120 Organisations Call on Chancellor for Power Bill Reform
Over 120 businesses, unions, and charities have urged Chancellor John Healey to move policy levies off electricity bills and onto general taxation.
- Written by
- Net Zero Home Scheme editorial team
- Last updated
- Topic
- energy bills, tariffs, policy
On 14 September 2026, sustainable business publication edie reported that a broad coalition of over 120 organisations wrote to Chancellor John Healey, demanding an immediate overhaul of policy levies on electricity bills. The group includes Energy UK, Which?, Greenpeace, major trade unions, and leading business associations, all calling on the Treasury to shift legacy policy costs off domestic power bills and onto general taxation.
The campaign highlights how policy levies continue to distort UK energy prices by inflating electricity tariffs while leaving natural gas relatively untaxed per unit. For reward directors and HR leaders, this joint push by trade unions and employer representatives underscores the ongoing impact of household energy costs on employee financial wellbeing.
What the numbers say
The joint representation sent to the Treasury details the financial burden created by the current billing structure. As reported by edie on 14 September 2026, the key figures and policy metrics include:
- Over 120 individual organisations signed the joint letter to Chancellor John Healey, spanning energy suppliers, consumer advocate groups, trade unions, and environmental charities.
- Policy levies on electricity currently add between £100 and £150 per year to standard domestic power bills, funding legacy subsidies such as the Renewables Obligation and Feed-in Tariffs.
- According to Ofgem price cap figures, domestic electricity unit prices in Great Britain sit near 24.5p per kilowatt-hour (kWh), compared to approximately 6.2p per kWh for natural gas, maintaining a price ratio near four to one.
- Moving policy levies to general taxation could reduce domestic electricity unit rates by up to 15 percent, lowering annual bills for electrified households across the country.
Where official details remain unconfirmed, the exact timeline for any reform rests with the Treasury. Chancellor John Healey has not yet indicated whether levy rebalancing will feature in upcoming fiscal statements, leaving the precise implementation timetable uncertain.
| Bill Component | Current System Mechanics | Proposed Reform Impact |
|---|---|---|
| Electricity Unit Rate | Includes legacy policy levies and social subsidies | Reduced by transferring policy costs to general taxation |
| Gas Unit Rate | Low relative levy burden per kWh | Unchanged unit cost, narrowing the electricity-to-gas price gap |
| Heat Pump Efficiency | Requires high SCOP to beat gas running costs | Lower electricity prices significantly boost annual running savings |
| Household Bill Burden | High standing charges and power unit costs | Lower ongoing power expenses for electrified homes |
What this means for your home
For UK householders, the outcome of this levy campaign directly affects the running costs of home energy upgrades. Electricity prices remain roughly four times higher per kWh than gas prices, which artificially extends the payback period for clean technology.
If the Treasury acts on the coalition's demands, lower electricity unit rates will improve the financial return on several key home installations:
- Heat pumps: Heat pumps operate at a Seasonal Coefficient of Performance (SCOP) between 3.0 and 4.0, delivering three to four units of heat for every unit of electricity consumed. A reduction in electricity unit prices makes heat pumps substantially cheaper to run than traditional gas boilers, even in older properties.
- Solar PV systems: Lower grid electricity prices slightly reduce the avoided-cost value of self-consumed solar power. However, lower unit costs make home electrification more accessible overall, and daytime generation continues to offset peak grid charges.
- Home battery storage: Lower off-peak electricity rates allow battery storage systems to charge cheaply overnight, offsetting peak daytime consumption and protecting households against price volatility.
- Plug-in solar: Compact balcony or garden plug-in solar systems offer immediate bill reductions by offsetting daytime background electrical loads, providing a low-friction entry point for renters and flat owners.
While households await official government policy decisions, taking action to lower mains electricity consumption remains the most reliable way to reduce monthly bills.
What this means for employers
For HR, reward, and sustainability directors, the joint letter from trade unions and business leaders demonstrates that energy costs remain a critical component of financial wellbeing. High domestic power bills directly erode real household disposable income, driving employee interest in practical cost-saving support.
Reward teams evaluating their benefit portfolios should recognise that home energy costs are no longer just a personal household matter, but a major factor in employee retention, remote working productivity, and corporate Scope 3 carbon reporting. Supporting employees with practical home energy retrofits delivers tangible financial relief while aligning with organizational net zero goals.
Employers can address this need without taking on administrative complexity or capital expense. Through the Net Zero Home Scheme, organisations can provide their workforce with access to member pricing on accredited solar PV, heat pump, battery storage, and plug-in solar installations, with no cost to the employer, no salary sacrifice, and no payroll deductions, delivered by Net Zero Benefits alongside The Electric Car Scheme.
Frequently asked questions
Why are policy levies currently charged on electricity rather than gas?
Historical energy policies placed environmental and social subsidies primarily on electricity bills to fund early renewable energy deployment. As the grid decarbonises, this structure now penalises households using clean electric heating compared to those burning natural gas.
How would moving levies to general taxation affect household bills?
Shifting policy levies off electricity bills and into general taxation would directly lower the unit price of electricity per kWh. This would reduce annual power costs for all domestic consumers, particularly households using heat pumps or electric vehicles.
Should employers wait for government tax changes before introducing home energy benefits?
No. While government policy decisions take time to negotiate and implement, employees face immediate energy bill pressures today. Introducing home energy benefits gives staff immediate access to discounted clean energy installations that cut bills regardless of future tax changes.