Brexit presents prospect of lower energy bills

Brexit presents prospect of lower energy bills

With the uncertainty that Brexit originally provided and recent issues regarding French Nuclear Reactors helping to drive electricity prices up in recent months, it was certainly welcomed news to hear something positive on the energy horizon this week.

The news came from the business, energy and industrial strategy (BEIS) committee, as it held its second evidence session in an enquiry into the implications for energy and climate change policy of Britain’s withdrawal from the EU.

Stew Horne, energy regulations principal policy manager, Citizens Advice suggested leaving the EU will give the UK scope to cut VAT rates on energy bills, with an estimated saving for the average consumer of £60 per annum.

A VAT cut on energy bills was hyped as a benefit of leaving the EU by Leave campaigners during the referendum.

The Director of the Association for the Conservation of Energy, Joanne Wade, added: prioritising a reduction of VAT on materials rather than bills would bring greater benefits to consumers.
Head of external affairs at the Energy and Utilities Alliance Isaac Occhipinti, also supported cutting VAT rates on energy efficient building materials. He also added, the UK’s exit from the EU would give it the opportunity to rebalance its approach to decarbonisation in order to become less focussed on electricity generation