The Energy Bill in Parliament proposes to introduce a new levy on consumer bills to fund hydrogen development. This levy would add to households’ bills, during a cost-of-living crisis, but will not bring them any benefit. Hydrogen is highly unlikely to be used to decarbonise home heating. Parliamentarians should amend the Energy Bill to remove clauses 65 to 67 to prevent the introduction of the hydrogen levy.
Hydrogen will have a role in the UK’s transition to net zero. However, independent analysis does not support its use to heat homes: it is inefficient, expensive and brings safety risks. The government should therefore fund its hydrogen revenue support mechanism through normal government spending, rather than unfairly charging consumers. E3G has previously urged the government to support green hydrogen produced from renewable electricity.
Download “The Case Against Hydrogen Levy” here
