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UK consults on domestic energy efficiency

Britain's finance ministry on Friday issued a further round of consultation on use of economic instruments to boost household energy efficiency. It underscored the UK's intention to seek EU agreement to allow lower value added tax (VAT) on energy efficient products and services in forthcoming negotiations while warning that this could not be guaranteed. Products that could potentially benefit include general household appliances plus condensing gas boilers, compact fluorescent lights and loft insulation materials. The UK proposals contrast with the European Commission's decision not to propose tax differentiation for environmentally sound products in its recent communication on an EU integrated product policy (EED 18/06/03). See consultation paper.

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