Financial Times FT.com

Tories shift on carbon levy

By Jim Pickard and Fiona Harvey

Published: October 14 2009 03:01 | Last updated: October 14 2009 03:01

Energy bills could have to rise to pay for new carbon capture and storage schemes whoever wins the next general election, after an apparent shift in the Conservative party’s energy policy.

The Labour government is already committed to a carbon capture and storage (CCS) levy on households – equivalent to a 2 per cent rise in bills by 2020 – to raise the billions of pounds needed to fund the new technology, which takes the carbon dioxide emitted from power stations and stores it deep underground. The move is seen as vital to keeping the lights on while tackling climate change.

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