Overview
- The government will remove the Carbon Price Support on electricity generation from April 2028, Exchequer Secretary Dan Tomlinson said in a written statement to Parliament.
- Introduced in 2013 to make fossil-fuel power more expensive, the levy helped push coal off the grid by 2024.
- The CPS had been frozen at £18 per tonne of carbon dioxide until 2028 under last year’s budget.
- Carbon costs for power producers will still apply through the UK’s carbon market, the Emissions Trading System, where permits have recently traded near £49 a tonne.
- Ministers frame the change as bill relief for homes and firms, saying it will also help offset charges linked to a wider industrial electricity support scheme.