Secretary of state for energy and climate change and Liberal Democrat MP, Ed Davey has said he will “fight like a tiger” to defend green levies.
Davey told the Guardian, he would protect renewables subsidies after Prime Minister David Cameron called for a review of green taxes during Prime Minister’s question time last week.
The Solar Trade Association (STA) clarified the review does not cover FITs or the Renewable Obligation or renewables contracts for difference (CfDs), making up roughly 4% of average energy bills.
On Thursday 24 October deputy prime minister Nick Clegg suggested moving the remaining energy efficiency levies (roughly 5% of bills) to general taxation rather than bills, saying: “I do not want to turn our backs on the poorest in society. I don't want to turn our back on the environment”.
Davey reiterated his party leader's stance.
“We'd be completely daft to get rid of those because what you'd be doing is solving the energy bill crisis on the backs of the poorest. No, absolutely not, won't agree to it, forget it. If that can be funded in a more generous way, then hey, I'm all ears.” Davey told the Guardian.
He added: “All I care about is the objectives remain clear and stable, helping the fuel poor, keeping the lights on, getting homes insulated and supporting our green economy.”
Davey also championed keeping costs untouched for investors.
“The green taxes we have been pushing as Liberal Democrats in this government have been extraordinarily successful and point to an extremely green, clean energy future. They're not being touched and they won't be touched. It's incredibly important for investors that they hear that.”
Davey told the Guardian he thinks in the long-term, solar is the top renewable energy choice and isn't sure nuclear power stations will be needed in the near future. He continued by saying that he is “not going to give up on renewable energy”.
“They are not going to touch it, and I am not going to betray the fuel poor. That, for me, is a complete red line. I feel passionate about that,” said Davey.
Political pressure and focus has risen on the issue of energy bills and fuel poverty after opposition leader Ed Miliband proposed a price freeze until 2017 at the annual Labour party conference two weeks ago.
Davey wrote on bringing energy bills down, in the Liberal Democrat Voice, on the 18 October: “Whilst by 2020 policy costs will have added £286 a year to people’s bills, the savings resulting from our energy and climate change policies will amount to £452 – bills will be £166 lower than they would have been.”
Davey also said he believes the UK will beat the target for 30% renewable energy generation by 2020.