Green energy tax will hit households critics say.

The Energy and Climate Change Secretary Ed Davey defended the “carbon floor price” policy, which sets a minimum on what British companies must pay for the greenhouse gases they produce.

He said it was “very important” to develop green energy policies and move away from relying too heavily on gas supplies from around the world.

The floor price scheme, which is due to be in place next year, is intended to encourage big companies, especially power generators, to adopt more environmentally friendly technologies.

However, critics have warned that the tax will inevitably be passed on to consumers. Mr Davey said it was right for the Government to pursue green policies to “insulate” the economy from fluctuations in world gas prices.

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