Green gas levy will hit household bills! Will it affect you?

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On October 31, Glasgow will host the COP26 Climate Conference, which aims to accelerate efforts to reach the goals of the Paris Agreement on Climate Change. The government has responded to the growing demand for sustainability by preparing to introduce a new green gas levy.

The new tariffs will show the UK’s commitment to tackling climate change. With the proposed tariffs introduced before the end of the year, it may be time to think about how this could affect your household bills. So, here’s what you need to know about green gas tariffs and how it can affect you.

What is green gas levy?

The Green Gas Levy is a new government tax that will apply to all licensed UK gas suppliers. They will pay the levy according to the amount of meter points they will serve. This means that large suppliers will be charged at a higher rate.

The tariff will finance bio-methane injection into the UK’s gas supply. The goal of this initiative is to increase the amount of green gas produced so that more can be supplied to customers. It is also being used to reduce the use of fossil fuels.

The introduction of tariffs may increase the price of gas. As a result, about £ 170 can be added to the cost of your household gas bill each year. In addition, the government hopes that this steep increase will encourage more consumers to move away from fossil fuels and invest in sustainable energy sources.

The tariff was given the green light on 11 October 2021 and is set to officially launch this fall. The first tariff collection is scheduled for April 2022, which means it won’t be long until we notice a price increase.

Who will be affected by the green gas levy?

The green gas levy will place an obligation on gas suppliers to make quarterly levy payments. These payments will fund the Green Gas Assistance Project.

In order to pay the new tax, gas suppliers will likely increase their prices, affecting any customers who use their gas.

The green gas levy will affect all gas consumers. However, customers do not have to pay direct levy. Instead, the cost of paying it as a supplier will run into customers ’gas bills.

How can you avoid the green gas levy?

It is hoped that green gas tariffs will encourage consumers to use energy sources environmentally. Therefore, those who rely on renewable energy instead of gas will not be affected by the levy.

All licensed UK gas suppliers will be obliged to pay the levy, so gas customers cannot avoid high prices. However, it is possible to avoid paying higher fees by switching to gas for a more sustainable energy source. Energy produced through solar panels, wind turbines or heat pumps will not be taxed.

Why choose a green energy source?

With increasing climate change, now may be a good time to switch from your traditional household gas. Investing in renewable energy will help you avoid rising gas prices and do your part for the planet!

Solar panels generate energy from sunlight and can be used to power your entire home or business. Although the initial cost of solar panels may seem high, they can help you save on bills in the future. The average UK homeowner can save around £ 653 per year using solar energy instead of gas.

Other renewable gas options include wind turbines, heat pumps, biomass power and hydropower. The benefits of a renewable energy installation go far beyond just reducing the cost of gas bills, making it an excellent investment.

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