UK Government plans to place hydrogen levy on ‘gas shippers’ not households

The UK Government has tabled an Energy Bill amendment that would see it ditch its current hydrogen levy plans and shift the cost away from households.

Secretary for Energy Security and Net Zero, Grant Shapps, has lodged an amendment to a clause that would spread the cost of funding hydrogen industry investments onto “gas shippers.”

Originally proposed to be placed on domestic energy bills from 2025, the hydrogen levy was met with a degree of opposition, with a report by a UK thinktank in May (2023) suggesting such levy could increase the average dual fuel household’s energy bills by £118 per year.

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