Green measures 'will not lead to large energy bill increases' - 15/12/2011

People who are looking to compare energy tariffs in order to find a cheap electricity deal may be pleased to hear the impact of green measures on bills may have been overstated.

This is according to a report from the Committee on Climate Change (CCC), which stated the main driver for price hikes in recent years has been increases in wholesale gas prices and not levies to help subsidise low-carbon technology.

An analysis by the group estimated the typical household gas and electricity bill will be increased by £110 by 2020 due to the impact of environmental costs.

It noted its findings therefore disprove frequently repeated claims that recent costs to help drive investment in renewable energy would see bills increase to as much as £3,000 or more.

Chair of the CCC Lord Adair Turner said the issue of green policies has become a "politically controversial area" and the group was keen to provide a "dispassionate analysis" of the impact on bills.

He added: "We found that bills have increased primarily in response to increased wholesale gas costs and not due to environmental policies."

Lord Turner also observed that if new drives to stimulate energy efficiency are enacted successfully, average bills by 2020 could be sustained at roughly the same levels they are at currently.

The report estimated widespread take-up of insulation and better central heating controls could reduce gas usage by around eight per cent, while technologies such as energy-efficient lighting and low-power appliances may slash electricity consumption by almost a fifth.

Responding to the report, director of energy at Consumer Focus Audrey Gallacher stated there is still a "pretty steep mountain to climb" in order to ensure the UK's housing stock is working as efficiently as possible.

She said the industry is currently struggling to meet its targets for reducing gas and electricity consumption, so must be backed up with extra funding as part of a clear government strategy.

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