Npower chief reveals cost of a single energy tax

January 23, 2014 3:23 PM

Npower chief executive Paul Massara has said that the Government has not done enough to reduce the impact of green levies on household energy bills.

In December, and following sustained public criticism of rising fuel bills, George Osborne announced a change in some of the green levies included in energy bills. However, the Npower boss said it:

reduced the bills by about £53… that is just one small measure… if they’d have scrapped it, it would have been about £140 off the bill.

Massara’s comments coincide with the launch of Npower’s own report into the state of the domestic energy market. It claims that although commodity costs of electricity and gas will actually fall through the rest of the decade, the average consumer’s energy bill will increase from £1,123 in 2013 to £1,330 by 2020. The reason for this rise? The report points to a minimum of 16 regulatory and policy costs, including taxes to fund energy policies relating to wind, solar and wave power. These taxes are forecast to increase by £136 during the next 6 years.

Such findings raise immediate questions about the seriousness with which the Government really intends on relieving the pressure faced in households across the country. Why, if the market cost of energy is falling, are consumers paying more? Why is it the case that expensive charges continue to be applied to bills despite resistance against this? Without convincing and transparent answers to these and other questions, taxpayers will continue to feel that they are paying more for no reason.

To find out more about high energy taxes and let your MP know what you think about them, visit

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