SNP challenges Labour to remove Eco levies

The Scottish National Party (SNP) has called on the Labour Party to commit to remove the Energy Company Obligation (Eco) levies from energy bills if it leads the next UK government.

The SNP has pledged to fund Eco via general taxation, rather than through levies on energy bills, “in order to immediately reduce household bills”, and the party has called on Labour to do the same.

SNP energy spokesperson Mike Weir said: “It makes no sense that a measure designed to tackle fuel poverty is instead driving up household energy bills and thus exacerbating fuel poverty.

“Funding Eco directly is a major investment in energy efficiency, making homes warmer, bills lower and reducing carbon emissions. The SNP has committed to this and we call on Labour to do likewise.”

He added that the energy efficiency work funded under Eco should continue to be completed because it helps to reduce fuel poverty and cut fuel bills.

The SNP also reiterated its plans to reform the “failed” transmission charging regime to benefit the Scottish energy industry, which were announced in a pre-election business manifesto.

Weir stated that the charges, which are as high as £26/kW in the north of Scotland compared with as low as £3.94/Kw in other areas of the UK, are responsible for the coal-fired Longannet power station closing next year as well as “penalising renewable generation in Scotland”.

He said: “Labour’s manifesto was silent on transmission charges, which is unacceptable given the importance of Longannet to the Scottish economy.

“In contrast the SNP favours further reform of the charging system. A strong group of SNP MPs in Westminster will call for cuts in both energy bills and transmission charges.”