Removing That Cost, As Well As Charges for the Feed-in Tariff and the Warm Home Discount, Would Save Another £80, the Party

Nigel Farage's Reform UK has pledged to use its first 100 days in government to strip a string of policy costs from energy bills, a move the party claims would save households £250 per year. The announcement is set to be made by Reform's Deputy Leader Richard Tice in a speech at the party's annual conference in Birmingham, England, on Friday. The proposal would reduce costs for voters partly by scrapping levies already directly applied to household bills and partly by reducing costs for gas generators, savings the party says will be passed on to consumers.

Tice described the cost of energy as "a national crisis. The cap on energy costs, expressed as the average household's bill and set every quarter by the Ofgem regulator, is set to jump 4 percent next month, driven principally by the impact of the Middle East conflict on global gas markets." Reform said it will remove charges levied on gas generators, including through the U.K. Emissions Trading Scheme (ETS), designed to force down harmful greenhouse gas emissions by the most energy-intensive manufacturers. Tice will also pledge to scrap Carbon Price Support (CPS), a tax on power generators introduced by former Conservative Prime Minister David Cameron.

The Labour government under Keir Starmer had already pledged to remove CPS costs from bills from 2028. The party said removing those two levies would shave £90 per year from energy bills. Reform also pledged to scrap other policy costs currently added to household bills, including the remainder of the Renewables Obligation scheme, used to fund legacy net-zero projects. Removing that cost, as well as charges for the Feed-in Tariff and the Warm Home Discount, would save another £80, the party said.

Reform said it would also make permanent Prime Minister Andy Burnham's decision to scrap VAT on household electricity bills, a policy the government has forecast will cost £850 million over the next year. Farage's party said it would also remove VAT on gas. Tice pledged Reform would take extraordinary measures to bring costs down, restore fairness to the energy sector, and take urgent action within 100 days of taking office to put an extra £250 a year back into your pockets.