The electricity consumer is critical to the success of decarbonization. Yet, the economic signals that consumers receive in many countries are likely to discourage efficient decisions and could slow decarbonization or unnecessarily raise the costs. This Oxford Institute for Energy Studies’ publication considers fiscal reform crucial to eliminating incentives to generate (and store) one’s own electricity simply to avoid paying taxes and levies collected through regulated electricity tariffs. These levies fund public policies, notably the promotion of renewable power and cogeneration. Further, the paper makes a number of recommendations, with the main proposal being to finance support for renewable energy and other public goods through the government budget, not through special charges on electricity. To read the full paper, follow the link.
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