Last week the Chancellor of the Exchequer, George Osborne, delivered his Autumn Statement to the House of Commons. Many predications had been in the press surrounding the energy industry such as removing green levies from household bills to how much support would be provided to the green energy sector.
The report has come under fire from environmental groups, the renewable energy sector and consumer groups, with criticisms that The Conservatives are attempting to appeal to right-wing voters and the major energy companies.
Shale gas received considerable attention in the Chancellor's report as he made his support for the controversial gas extraction method very clear. He used the Autumn Statement to confirm his tax break for the industry by halving the tax rates on the early profits made by fracking firms.
George Osborne still maintains his pledge to push through more offshore wind, whilst leaving onshore wind and solar power as a lesser priority.
Energy Intensive Industries
A major criticism that has come forward since the Autumn Statement is the absence of a further support package for energy intensive companies in the UK, such as manufacturing plants.
George Osborne announced in his report that he would not be increasing the tax imposed on fuel. This decision has been welcomed by the Federation of Small Businesses as it takes the load off smaller companies in a tougher climate.
Domestic energy bills
As expected George Osborne announced that he will be removing green levies from home energy bills - such as the Energy Company Obligation - in order to keep costs down for consumers by an estimated £50 a year.
This blog was originally posted on the Business Cost Consultants website: http://www.businesscostconsultants.co.uk/energy-autumn-statement/