UK to Scrap Carbon Tax on Gas Plants to Cut Power Bills (1)

The UK will eliminate a carbon tax on natural gas used by power generators and industry as it tries to curb energy bills while also decarbonizing the grid.

The Carbon Price Support, which power stations must pay in addition to buying UK emissions allowances, will end in April 2028, according to the Treasury. The levy is paid by generators and passed on to consumers, adding about £7 ($9.50) per megawatt-hour to electricity prices, according to Bernstein Research.

“CPS has done its job and is no longer fit for purpose,” Exchequer Secretary Dan Tomlinson said in a written statement to Parliament. ...