Government's Share of Energy Costs

Graywisdom

Today, 27 Feb, saw online a pie chart from BG showing how costs are split. It was no great surprise to me that the Government is taking up 20percent for 15percent  'Government social & environmental schemes' and VAT at 5percent.. Now I can understand the "helping vulnerable customers" , but part of the 15percent is for 'encouraging take-up of renewable technology'!!. Smiler Sunak must be rubbing his hands with glee. With the extra amount of VAT he will receive from the increased Gas and Electricity (as well as the extra VAT he is receiving from higher petrol/diesel prices), Downing Street will be able to have garden parties 24 hours a day.! Oh I forgot I will be receiving, sorry mean being loaned, £400 pounds extra to help me.

Thrugelmir

To expand your knowledge further

https://www.gov.uk/government/news/biggest-ever-renewable-energy-support-scheme-opens#:~:text=The biggest ever round of,Great Britain's green energy projects.

Graywisdom

A big apology to felllow readers. Of course the massive loan is only £200!! Well at least it is less to pay back.

[Deleted User]

Many years ago, the Government of the day decided that all the costs associated with innovation; net zero; smart meters; WHD et al would be added to consumer electricity bills rather than be paid for by taxation. For example, the Government is presently consulting on whether the costs associated with getting upgraded electricity supplies to EV charging hubs should be added to consumer bills.  Whether we pay for these things directly through our bills or indirectly through taxation doesn’t change the simple fact that the costs will eventually have to be recovered in some way.

Ultrasonic

Dolor said:

Whether we pay for these things directly through our bills or indirectly through taxation doesn’t change the simple fact that the costs will eventually have to be recovered in some way.

True, but it does make a difference in terms of who pays, and how much.

[Deleted User]

Ultrasonic said:

Dolor said:

Whether we pay for these things directly through our bills or indirectly through taxation doesn’t change the simple fact that the costs will eventually have to be recovered in some way.

True, but it does make a difference in terms of who pays, and how much.

True,  but that applies to most things that we end up paying for. For example, people who send their children to private schools still pay for State education; those who pay for private healthcare still pay for the NHS etc. At the end of the day, it comes down to the Government and its policies.

Ultrasonic

[Deleted User] said:

Ultrasonic said:

Dolor said:

Whether we pay for these things directly through our bills or indirectly through taxation doesn’t change the simple fact that the costs will eventually have to be recovered in some way.

True, but it does make a difference in terms of who pays, and how much.

True,  but that applies to most things that we end up paying for. For example, who send their children to private schools still pay for State education; those who pay for private healthcare still pay for the NHS etc. At the end of the day, it comes down to the Government and its policies.

FWIW I was principally thinking of taxation having greater scope to be progressive. The examples you gave are all paid for via general taxation, whereas the energy related charges being discussed above are actually pretty unusual in not being so, and it does make a difference.

Yes this is ultimately a government policy decision.