As the bill was debated in the House of Commons on Tuesday evening, Labour’s Justin Madders said: “This experiment just does not stack up, and the idea that my constituents would end up paying for it through a hydrogen levy just adds insult to injury.”added: “There is real concern about putting a hydrogen levy on household bills at a time when so many people are already struggling to pay those bills.
And Alec Shelbrooke, the Conservative MP for Elmet and Rothwell, called the hydrogen levy “misguided”, adding: “We have to take the public with us on this – we cannot keep adding to people’s bills to try to make things work.” Most existing levies on bills either pay for technology such as wind power which is likely to cut household bills in future, or provide funding for schemes to help the poorest households with their energy costs. But experts expect that large businesses will benefit the most from the development of hydrogen power because it may prove too difficult to pipe the gas into homes.
Responding to MPs in the Commons, Energy Minister Andrew Bowie said: “The purpose of the hydrogen levy is to provide long-term funding for the hydrogen production business model. I reiterate that the provisions in this bill will not immediately introduce a levy. We will consult on the detailed levy design, and the decision to introduce a levy will take into account the affordability of energy bills.
Peers removed the provision for a levy in the House of Lords earlier this year but the Government is expected to seek to restore the clause in the Commons over the coming weeks.
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