'Misleading' article on green energy costs criticised - 11/05/2012
A national newspaper has been criticised for an article that was claimed to distort the cost of renewable power and claimed new regulations will make it hard to get cheap energy.
Writing on the Left Foot Forward blog, associate director for globalisation and climate change at the Institute for Public Policy Research (IPPR) Will Straw highlighted a piece in the Daily Telegraph that said green taxes will add more than £200 to a typical domestic energy bill.
However, Mr Straw said this is inaccurate, as the main drivers for increases over the next 15 years will be rising wholesale expenses, supplier costs and VAT.
He added: "There is a considerable downside risk that high gas prices due to increased global demand from countries like China could push up wholesale costs," which could send tariffs as high as £1,425 without any influence from environmental policies.
Recently, a report by the IPPR said consumers could miss out on £1.9 billion of cheaper energy bills by 2020 due to a lack of competition in the market.
Mr Straw therefore stated it is vital Ofgem works to reform the market and offer a fairer deal for consumers.
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