PARLIAMENTARY WRITTEN QUESTION
(2 January 2026)
Question Asked
To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to remove the Renewables Obligation (RO) levy from energy bills.
Asked by:
James MacCleary (Liberal Democrat)
Asked by:
James MacCleary (Liberal Democrat)
Answer
From April 2026/27 to 2028/29, 75% of the domestic costs of the Renewables Obligation will be moved to the Exchequer. This reform shifts the balance from levies on bills to public spending. Along with the discontinuation of the Energy Company Obligation (ECO) scheme, it will result in an average £150 reduction in costs on household energy bills in April.
Over three years, £7 billion worth of historic RO levies will be funded through public expenditure, providing short-term relief and greater long-term benefits for consumers.
Answered by:
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