Retailers call for cut in green levies

John Healey has been called upon by retailers to reduce the financial burden of green policies on energy bills, as they anticipate a £440m surge in electricity expenses this year.

The British Retail Consortium (BRC), representing major retailers such as Tesco, Sainsbury’s, and Marks & Spencer, warns that escalating “policy costs” on energy bills will ultimately lead to higher prices for consumers.

According to the BRC’s research, retailers’ electricity costs are projected to climb from £2.72bn last year to £3.16bn in the current year.

This increase is primarily attributed to government-imposed charges, rather than the global rise in energy prices, which now account for two-thirds of retailers’ electricity expenses.

Among the policy costs levied on retailers’ energy bills are the renewables obligation, funding large-scale electricity generation projects, set to rise by 2.5% to £646m this year.

Helen Dickinson noted that retailers’ energy bills are increasingly driving up the cost of daily essentials for consumers across the board.

She emphasized that substantial reductions in policy charges on electricity bills would alleviate pressure on retailers, enabling them to invest in maintaining lower prices for households and preserving jobs.

A government spokesperson stated that the Chancellor is committed to providing relief for families and businesses, as well as mitigating cost pressures.

They highlighted the removal of VAT from electricity bills and the reduction of electricity costs by up to 25% for over 10,000 manufacturing businesses through the British Industrial Competitiveness Scheme.

The BRC’s alert regarding rising energy costs shows the necessity for government intervention to support both retailers and households.