Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the likelihood that off-gas grid businesses will switch to higher carbon fuels when the climate change levy on liquid petroleum gas increases up to (a) 2019 and (b) 2025.
The government announced at Budget 2016, that Climate Change Levy rates for gas and electricity would be rebalanced to a 1:1 ratio by 2025, to reflect recent data on the fuel mix used in electricity generation. The Treasury have had constructive dialogue with liquid petroleum gas suppliers on the impacts of the policy changes on the off-gas grid market.