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LONDON DAILY ARCHIVE

Energy Secretary Backtracks on Plan to Hike Household Energy Bills for Hydrogen Production

Grant Shapps, the Energy Security Secretary, has announced that households will not have to pay more on their energy bills to fund hydrogen production.

24 June 2023 · 03:02 UTC

An annual levy, expected to be introduced in 2025, would have covered the cost gap between producing low-carbon hydrogen and polluting fossil fuels, but Shapps has indicated a U-turn and said he is against a direct charge on the bills of energy consumers.

He believes it is important to get the hydrogen industry "up and running" but does not want to see households' bills "unnecessarily bashed".

The government is currently in talks with the Department for Energy Security, Net Zero, Downing Street, and the Treasury to agree an alternative to the levy.