British Gas Boss Warns Against "Abomination" of Levies on Gas Bills

The proposal to force households with gas boilers to pay higher green taxes than those with heat pumps has been met with stern opposition from Chris O'Shea, the chief executive of British Gas owner Centrica. As the Energy Secretary, Ed Miliband, considers stripping green levies from electricity bills, O'Shea has warned that such a move would punish the poor and create an "outrageous distortion of the market." Instead, the costs would be transferred to gas bills, making a boiler more expensive to run. O'Shea's warning comes as the Energy Secretary is set to announce a radical rethink on clean power, with an announcement expected this autumn.

Key Takeaways:

• O'Shea warns against putting levies on gas bills, stating it would be an "abomination" and a "terrible distortion of the market."
• The move would mean those with heat pumps would be subsidized by those with gas boilers, creating an unfair energy bill divide between households.
• O'Shea suggests shifting the cost of green levies onto general taxation rather than creating an energy bill divide.
• Experts warn that removing green taxes from electricity bills could increase the average gas bill by £120 a year.
• Centrica's chief executive is critical of Labour's move to ban all new drilling in the North Sea, stating it would increase reliance on imported LNG and harm the environment.
• O'Shea doubts the government's pledge to cut household energy bills by £300 this Parliament, calling it "achievable" and suggesting it would make the UK a hostage to fortune.
• Centrica is exploring wind investments in Ireland and turning its attention to Rough, the gas storage facility it runs 18 miles off the coast of East Yorkshire, which risks closure by the end of the year.
• A full closure of Rough would involve the loss of hundreds of jobs and threaten Britian's energy security.

Statistics:

• £120: increase in average gas bill if green taxes are removed from electricity bills
• 100: days of gas storage available in France, Netherlands, and Germany, compared to six days in the UK
• £300: reduction in household energy bills promised by Ed Miliband
• £100m: loss Centrica expects to make on Rough this year
• 40: years old, the Rough gas storage facility

Sources:

• The Telegraph article featuring Chris O'Shea's statements: [1]
• The Climate Change Committee report urging removal of green taxes from electricity bills: [2]
• Centrica's statement on Rough gas storage facility: [3]
• Chris O'Shea, Chief Executive, British Gas, via The Telegraph