Green Energy May See Fuel Bills Rocket
Green energy policies are set to add more than £300 a year to the average household fuel bill, according to Downing Street calculations.
David Cameron has been warned that there will be a 30% rise in consumer energy bills by 2020 as a direct result of the coalition’s policies. According to The Daily Telegraph, there are also doubts that price increases will be offset by lower consumption due to energy efficiency measures.
The projected rise in the average household energy bill of £1,059 by 2020 is blamed on policies like carbon pricing.
“Our policies will both add and subtract from future bills because we need to build new reliable energy sources to keep the lights on, but we’ll also be helping people to cut their bills through greater energy efficiency.”
A spokesman for the Department for Energy and Climate Change
Such policies are designed to promote the use of renewables and nuclear power sources.
A new obligation on energy firms to provide extra support with energy efficiency to low income homes is also a major factor.
“Over time it is clear that the impact of our policies on consumer bills will become significantly greater,” senior policy advisor Ben Moxham states.
He adds: “DECC’s (Department of Energy and Climate Change) mid-case gas price scenario sees policies adding 30% to consumer energy bills by 2020 compared to a
world without policies.” Details of the increases are dated July 29, 2011, and copied in to senior Downing Street advisers including Mr Cameron’s chief of staff Ed Llewellyn. The projected rise is a major headache for Mr Cameron, who promised before last year’s general election to tackle soaring prices by giving regulators more powers.
Energy Secretary Chris Huhne has repeatedly dismissed claims that fuel bills will rise by hundreds of pounds as “absolute nonsense” and “rubbish calculations”.
A spokesman for the Department for Energy and Climate Change said: "Reforms will not add £300 to bills.
“Our policies will both add and subtract from future bills because we need to build new reliable energy sources to keep the lights on, but we’ll also be helping people to cut their bills through greater energy efficiency.
“Our reforms to the electricity market will deliver the best deal for Britain and for consumers: getting us off the hook of relying on imported oil and gas by creating a greener, cleaner and ultimately cheaper mix of electricity sources right here in the UK.”
Source: Sky News – http://news.sky.com/home/uk-news/article/16062747