UK Climate Watchdog Urges Removal of Green Levies From Bills
(Bloomberg) -- The UK government must do more to lower electricity costs, including by removing green levies from energy bills, if it is to meet its net zero emissions target by mid-century, the country’s climate watchdog has said.
Previous efforts have centered more narrowly on decarbonizing energy supply, including the closure of coal-fired power stations. The Climate Change Committee said Wednesday that the focus must now shift to electrifying demand to absorb growing volumes of renewable power. That will require the adoption of electric vehicles and heat pumps on a scale comparable to the rise of mobile phones and refrigerators.
To help drive that shift, the CCC recommends removing policy levies from power bills. Although ministers have already taken some steps — this year transferring part of the cost of the Renewables Obligation into general taxation — more substantial action is still needed, according to the watchdog.
It also called for the government to bring down the cost of heat pumps, saying this would help accelerate the switch away from gas boilers.
UK greenhouse gas emissions fell 1.8% in 2025 from a year earlier, the CCC said, leaving them 50% below 1990 levels.
“The transition to clean electricity is not happening fast enough,” said Nigel Topping, the chair of the CCC. “Government support to accelerate the shift to electric vehicles and heat pumps is critical, not only to keep our climate targets within reach but to unlock savings.
“At this moment of political uncertainty, any weakening of current positions risks slowing these transitions, undermining investment and the long-term consistency businesses need.”
The recommendations will be an early test for Andy Burnham, who is widely expected to become the UK’s next prime minister in the coming weeks after Keir Starmer resigned on Monday. Burnham is likely to face tough questions over the future of North Sea oil and gas production, airport expansion and EV targets.
The incoming premier will also need to decide whether to offer energy bill support from October, when prices are expected to rise and the UK’s heating season starts.
©2026 Bloomberg L.P.
