Daikin joins calls to cut electricity levies from energy bills

UK – Heat pump manufacturer Daikin UK has added its name to a major open letter to the Chancellor, coordinated by the Electricity Bills Taskforce, calling on the Government to move electricity levies from energy bills to general taxation.

The letter has attracted support from organisations spanning energy, manufacturing, retail, housing, consumer and environmental sectors, highlighting growing concern over the impact of high electricity prices on households, businesses and UK competitiveness.

Tomoji Miki, Managing Director of Daikin UK, said: “As one of the UK’s leading heat pump manufacturers, we know how important it is for households and businesses to have affordable access to low-carbon heating. We believe such adjustments will be an important part of advancing the government-led transition to renewable energy, helping make cleaner heating accessible to more people across the UK.”

Daikin says that UK electricity prices currently stand 45% above the G7 median. The Taskforce letter sets out that moving levies to general taxation would lower business electricity prices by up to 20%, reduce average domestic bills by as much as £250 a year, and save a typical electrically heated household up to £420 per year.

The Electricity Bills Taskforce letter follows the Government’s Autumn Budget 2025 package, which made a partial start in shifting some levies away from household bills. The coalition argues that this was a welcome but insufficient step, and that a more comprehensive reform is now needed to deliver lasting change for both households and businesses.

For more information about the Electricity Bills Taskforce and the open letter, visit: www.energy-uk.org.uk