“We welcome the Chancellor’s Budget announcement to partly fund legacy policy costs from the Renewables Obligation from general taxation, which will provide relief for households.

“Early support for renewables via the RO was successful in bringing down the cost of deployment, such that these technologies are now cost-competitive and can be deployed at scale, reducing exposure to fluctuating gas prices and bringing lasting benefits to consumers and communities across the country.

“As we look for effective ways to reduce energy bills, we must ensure a stable and supportive policy framework to guarantee continued investment in renewables. Despite a shift in how it is funded, stability is essential to maintain investor confidence given the significant private investment required across the energy sector in the coming years.

“Removing legacy costs from electricity bills and improving the relative cost of electricity vs gas encourages the transition to electrification, helping spread fixed system costs over a broader base and making it fairer for everyone.”