A coalition row over the future of green energy levies has intensified, with Business Secretary Vince Cable warning that scrapping the policies would be 'short-sighted and foolish'. The Prime Minister's spokesman confirmed the levies are under review as part of a broader effort to ease household financial pressures.
Mr Cable acknowledged that Liberal Democrat ministers are fighting to maintain carbon reduction commitments against pressure from Conservative colleagues. He insisted that renewable energy investments will benefit consumers in the long run, as costs for technologies like offshore wind are expected to fall.
The dispute comes as SSE chief executive Alistair Phillips-Davies called for a national debate on the 'green agenda', claiming it will lead to further bill hikes. SSE's recent price increase of up to 10% will push typical dual-fuel bills to £1,380 a year. Phillips-Davies suggested that bills could fall by £110 per household if the government funded green subsidies through taxation.
Mr Cable rejected claims that green policies are a major factor in rising energy prices, attributing increases primarily to global market trends such as rising demand in Asia and supply restrictions from Iran. He argued that abandoning environmental policies would undermine the UK's long-term transition to a low-carbon economy.
Labour leader Ed Miliband has proposed a price freeze through legislation, adding further pressure on the coalition to address energy costs. The debate highlights growing tensions within the government over balancing environmental goals with consumer affordability.
