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Think Tank Backs ‘Essential Energy’ Guarantee for UK Homes Funded by North Sea Windfall Tax

NEF links a cheaper basic block of power to fresh pressure from volatile oil prices.

Overview

  • NEF, which published its plan Thursday, sets a basic allowance priced at today’s cap to cover hot water, two heated rooms, and core appliances.
  • The think tank puts the cost at about £4.5 billion and says higher tax receipts from North Sea oil and gas profits could pay for it.
  • Usage above the allowance would be charged at market rates, with NEF estimating average household savings of £163 and a 17% bill cut for the poorest families.
  • The proposal lands as energy markets swing following a tentative Iran ceasefire announced by President Trump, with oil prices still elevated and bills under strain.
  • NEF is a left-leaning, donation-funded group, while energy firms argue recent profits reflect market conditions and help fund infrastructure and low‑carbon investment.