More than 120 organizations, including energy companies, business groups, banks, retailers, and advocacy groups, have urged the UK government to remove "hidden taxes" from energy bills. These levies, which make up about 10% of energy costs, fund various government policies. The group, which includes Energy UK, the CBI, End Fuel Poverty, and Age UK, sent a letter to the chancellor, asking the government to cover the costs of these levies instead of passing them on to consumers. The letter was co-authored by the thinktank E3G and Energy UK. John Healey is scheduled to deliver his first budget on 28 October. The signatories want the government to stop funding renewable energy projects through energy bills and instead use general taxation. Former Chancellor Rachel Reeves shifted 75% of the funding for these levies to government taxation last year. The organizations also called for the removal of levies supporting nuclear power plants, the Warm Homes Discount scheme, and the Feed-in Tariff program, which was closed in 2019 but still pays people who generate their own energy and sell the excess back to the grid. According to the letter, removing these levies could reduce the average household energy bill by up to £250 a year and cut business electricity costs by 20%. Ed Matthew, director of the UK program at E3G, criticized the government for "actively sabotaging its own efforts to bring down energy costs by taxing electricity." Last year, Octopus Energy, the UK's largest energy supplier, warned that energy bills could rise by 20% over the next four years due to increasing levies, even if wholesale energy prices dropped. Rising global tensions, including the Iran war, have pushed up gas and electricity prices, with households facing the highest energy charges in three years this winter. Energy consultant Cornwall Insight predicts that the UK's energy regulator, Ofgem, will raise its quarterly price cap again in January, potentially increasing the average annual bill to £1,872. The UK government is under growing pressure to address high energy costs, which are among the highest in the developed world. It had promised to cut energy bills by £300 per year by 2030 before the 2024 election. The letter, supported by 123 organizations, highlights that UK energy bills are now 70% higher than they were in 2021. In July, Manchester’s mayor, Andy Burnham, announced a reduction in the VAT on domestic energy bills, saving households an average of £45, though this cut is set to expire in April. Dhara Vyas, CEO of Energy UK, emphasized that cheaper electricity would help reduce fuel poverty, ease the cost-of-living crisis, and support economic growth. The letter also warns that high energy costs are leading to business closures, job losses, and reduced investment in the UK.