• REA publishes a six point plan to tackle energy bill crisis;
• Plan includes measures to reduce energy bill costs and increase support to those that need it;
• Proposals also outline the action required to insulate homes and install domestic renewables and clean tech;
• Commercial Loan Scheme backed to support energy suppliers and protect customers from additional costs;
• Iterates the need to accelerate the wider energy transition to remove volatile gas prices from bills.

The Association for Renewable Energy and Clean Technology (REA) have published a six point plan to help tackle the energy bill crisis.

The plan includes measures to reduce energy bill costs by moving ‘green’ levies into general taxation and to suspend VAT on energy bills for a year. The REA says that the investment the levies provide has been crucial for driving the energy transition forward and must be protected, but that this would be more appropriate to be sourced from general taxation.

The REA has also urged to expand the eligibility and increase the value of the Warm Homes Discount to provide additional support for those who need it.

In parallel, the REA says the Government must provide catalysts to improve the insulation of homes and to drive up the installation of domestic renewables and clean technology to reduce the threat of volatile gas prices. This can be done by establishing an effective insulation scheme by Spring 2022 to ensure all houses be EPC rating C at least by 2024/25, and to remove VAT on domestic renewables and clean technology.

Finally, the REA has backed Octopus Energy’s calls to introduce a short-term Commercial Loan Scheme to support energy suppliers manage elevated wholesale gas prices and protect their customers from additional costs.

The REA has also iterated the need to accelerate the wider energy transition to remove volatile gas prices from bills. 

Dr Nina Skorupska CBE, Chief Executive of the Association for Renewable Energy and Clean Technology (REA), said:

“There is an immediate need to tackle the energy bill crisis and we support the calls to suspend VAT and expand the eligibility and increase the value of the Warm Homes Discount to provide additional support for those who need it.

“Additionally, while the investment the ‘green’ levies provide has been crucial for driving the energy transition forward and must be protected, we believe that it would be more appropriately sourced from general taxation.

“However, suspending VAT and boosting support schemes are relatively short-term measures. What the Government needs to do in parallel is provide a catalyst to better insulate our homes and drive up the installation of domestic renewables and clean technology to protect households from volatile gas prices.

“We want the financial burden of fossil fuels to be a non-issue within five years – to do that the Government must rapidly accelerate the shift to renewables and clean technology.”

The REA’s six point plan is as follows:

1. Move ‘green’ levies into general taxation – this must be ring fenced at an equivalent value;
2. Suspend VAT on energy bills for a year – mitigating against rising energy bills;
3. Expand eligibility and increase value of Warm Homes Discount – ensuring additional support for those who need it;
4. Remove VAT on all domestic renewable and clean technology – help households move away from fossil fuels;
5. Establish an effective home insulation scheme by Spring 2022 – ensure all houses to be EPC rating C at a minimum, where technically feasible, by 2024/25;
6. Introduce Commercial Loan Scheme – support energy suppliers manage elevated wholesale gas prices and protect customers from additional costs.

—ENDS—

For more information or to request an interview, please contact:

Jack Abbott, PR and Communications Manager,

07862 038370/ [email protected]

Notes to editors

• In order to reduce volatile gas prices, the UK needs to reduce the reliance on fossil fuel gas. This can be done most quickly, cheaply and in line with Net Zero targets by procuring new renewables capacity via six monthly CfD auctions and a three year rolling time frame of future auction dates and allocated budget, starting in summer 2022. 

About the Association for Renewable Energy and Clean Technology (REA):

The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

For more information, visit: www.r-e-a.net