Designed to encourage more low carbon energy investment, this new tax commences in 2013 based on the 'floor price' of carbon emission permits. This floor price will begin at £16 but rise to £30 by 2020 - but the cost of this tax will, naturally, be passed onto consumers rather than the power companies absorbing them.
The IPPR even believes such a move could lead to lower prices elsewhere - some other European countries may not follow with their own similar programs - and, crucially, may not cut the amount of carbon emitted.
Switched on?"The carbon price support scheme risks giving energy and climate change policy a bad name because it will do nothing to reduce carbon emissions, while piling more cost on to the shoulders of already hard-pressed consumers in the UK," claims Andrew Pendleton, IPPR associate director.
So its a bit of a mess. And a real worry for those - the UK's poorest - who will spend proportionately much more on their fuel bills as a consequence in future.