Industry leaders call on Chancellor to remove electricity levies

14 September 2026

A letter signed by more than 120 organisations, including Energy UK and E3G, is calling on the government to move energy policy levies from electricity bills to the Exchequer. The signatories argue that the UK’s electricity prices, currently 45% above the G7 median, are holding back investment, increasing household costs and hindering electrification. They say removing the levies from both domestic and business electricity bills could reduce business electricity prices by up to 20% and cut household energy bills by as much as £250 a year.

The letter sets out four main goals it seeks to achieve:

Reducing energy bills – Moving levies to the Exchequer would lower
business electricity prices by up to 20% and bring the total average domestic
energy bill reduction achieved by this government to as much as £250 a year.
Tackling fuel poverty – Low-income households spend three times the share
of their income on levies as wealthier households. Moving levies to the Exchequer would save a typical electrically heated household, which is twice as likely as other homes to be in fuel poverty, as much as £420 per year.
Boosting the UK economy – Over 40% of companies are cutting investment
due to high energy costs. Reducing electricity prices to the G7 median could
drive an additional £250 billion of economic output over the next decade.
Bringing down inflation – The Autumn Budget 2025 energy bills package is
expected to lower CPI inflation by 0.25 percentage points in 2026/27.

The full letter, including the list of signatories, can be read via the link below.

Energy-UK-x-EBT-Levies-Letter-summer-2026-with-signatories.pdf

Picture by Kirsty O’Connor / Treasury