Bill impact of Green Gas Support Scheme to peak at £4.70 per year
Published 12 November 2021
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The cost of the government’s new scheme to support the production of ‘green gas’ will peak at a “relatively low” £4.70 per year for the average household, an energy minister has said.
Lord Callanan made his comments when the regulations, which will govern the new Green Gas Support Scheme, were scrutinised by a committee of the House of Lords this week.
The scheme, which will replace the Renewable Heat Incentive, is due to come into force at the end of this month and will support new biomethane plants injecting gas produced by anaerobic digestion (AD) into the mains gas grid.
Lord Callanan said the cost of the scheme for the average bill payer would be “relatively low” starting at around £2.50 per year, before peaking at around £4.70 in 2028.
The levy will initially be charged on a per meter basis, which is easy to administer, before transitioning to the volume of gas consumed by users.
Lord Callanan told peers the impact from the tariff on the number of people in fuel poverty would be “minimal”.
The amount of gas that can be produced from specially grown energy crops, like miscanthus, will be capped at 50%, with the remainder supplied by food waste.
Lord Callanan said the volume of food waste available for use in AD plants should increase “significantly” over the lifetime of the Green Gas Support Scheme as a result of household food rubbish collection policies being developed by Defra.
He said that the scheme would support the production of enough gas to heat around 200,000 homes.
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