Coalition risks stalemate over green levies as discussions stall

 
Suzie Neuwirth
THE COALITION’S feud over green levies has hit a wall with no progress being made, City A.M. understands.

Government policies such as the Energy Companies Obligation (Eco) scheme, an energy-efficiency initiative implemented by suppliers and paid for in bills, are at the centre of a debate into energy prices and the cost of living.

Prime Minister David Cameron recently pledged to “roll back” levies, which are supported by the Lib Dems, causing tension between the Coalition parties. It is thought discussions about levies are ongoing, with an announcement due in the autumn statement on 4 December.

Energy firms are also believed to be facing repayments to customers of up to £2bn in direct debit overcharges, under government plans designed to soften the blow of rising winter bills. Refunds could be offered if an account is in credit for more than one month.