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Government targets rising energy bills

The government has said it is aiming to reduce the impact of energy company bill rises through income tax cuts, the council tax freeze and the fuel duty freeze.

Plans have been confirmed to reduce the current cost of levies, establishing a rebate saving the average customer £12 on their bill, for the next two years, worth a total of £600m.

The Warm Homes Discount will continue to help millions of vulnerable households receive a £135 rebate off their energy bill.

They will also reduce the cost of the Energy Companies Obligation, an insulation scheme delivered by major energy suppliers.

This will result in £30-£35 off bills, on average, next year.

Energy secretary Ed Davey said: “Energy bills are a big concern for many people, which is why we’ve been working to reform the energy market, increase competition and make it easier for people to shop around and switch supplier.

“Today’s package also ensures that energy companies are not off the hook. They will keep up their efforts to help people in fuel poverty cut their bills by making sure their homes leak less heat, and they will have to be more transparent about what they’re spending on social and environmental measures.

“Next year, our competition test will forensically examine what more we can do to get prices down through ferocious competition.”

“This won’t affect our commitment to tackling dangerous climate change through reducing Britain’s CO2 emissions, which will be backed by £540m in new investment to make sure Britain’s homes and public sector buildings are more energy efficient, permanently reducing their bills.”

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