Retailers urge Chancellor to cut policy levies as electricity bills jump by £440 million

Retailers represented by the British Retail Consortium told Chancellor John Healey that policy charges on energy bills will cause electricity costs to climb by £440 million this year, taking total spend to £3.16 billion. The BRC attributes most of the increase to government levies, not the worldwide price hike caused by the Iran war, which now accounts for two-thirds of the sector’s electricity bills. Key components include a 72 percent rise in Transmission Network Use of System fees, adding roughly £200 million, a 2.5 percent increase in the renewables obligation to £646 million, and a 2.2 percent rise in the climate change levy to £151.7 million.

Helen Dickinson said the surge threatens to raise prices for everyday goods and called for swift cuts to ease pressure on retailers and protect jobs. The BRC also plans to press the government on other costs such as employment taxes and business rates at the next Budget. The Treasury has not responded to requests for comment.