UK: Family energy bills to be £70 HIGHER than ministers claimed... despite millions lavished of green energy schemes
Chimerical "savings" from government-encouraged use of home insulation and lower-powered electrical appliances are supposed to more than offset green levies on British power bills -- so you can have your cake and eat it too! Reality is beginning to intrude however. I wonder if they have yet factored in the fact that lower powered electrical appliances tend to be run longer. If, for instance, a low-powered dishwasher doesn't get the dishes very clean, people tend to re-run the cycle -- thus using MORE power than if the government hadn't meddled
Family energy bills in five years’ time will be £70 a year higher than previously thought, the Government admitted today.
In 2020, the average energy bill will be £1,319 – around £50 cheaper than today – the Department of Energy and Climate Change has estimated in a report published today. This is £92 cheaper than without Government measure, the report claims.
But in March last year, ministers promised that the raft of green policies it has introduced to reduce Britain’s dependence on coal would drive down prices down to £1,245 a year on average – or £166 cheaper than if the Government did nothing.
It means bills will be some £74 higher than the Government claimed last year.
Despite the setback the Government insists its green policies mean household fuel bills are £90 cheaper this year than they would be without the raft of policies to cut emissions and save energy.
Families will also be saving £92 a year on their electricity and gas bills by 2020, the Department of Energy and Climate Change estimates.
But the figure for the end of the decade is significantly lower than savings of £166 predicted last March.
The assessment shows that while measures to support clean power – like subsidies for wind farms – push up bills, other policies to save energy, including insulation programmes and regulations on more efficient appliances, bring them down.
This year the average household energy bill is £1,369, compared with an estimated figure of £1,459 if there were no Government energy policies.
The £90 saving includes a £50 reduction as a result of moves brought in by the Government last December.
The majority of the £50 savings came from the Energy Company Obligation scheme which helps poorer families with energy efficiency measures to provide them with warmer homes and cheaper bills.
Subsidies for low carbon power makes up around 5 per cent of the average bill and energy efficiency measures make up around 2-3 per cent, the assessment shows.
But gas use is down 10 per cent and electricity use is 17 per cent less as a result of policies that save energy, Decc said.
By 2030, bills are predicted to rise to £1,524 with policies on emissions and energy savings, compared with £1,586 without any measures - though the estimates do not include extra policies that could be needed to cut carbon further.
Energy and Climate Change Secretary Ed Davey said: ‘We have the best energy security in Europe - and to stay that way we need to deal with a legacy of under investment and build a clean, secure energy system based on home-grown supplies.
‘I’m determined that while we tackle these challenges, consumers don’t pay a penny more than they have to for the energy they use.
‘We’re making homes warmer and cheaper to run, giving particular help to the most vulnerable people and avoiding the predicted energy crunch, meaning we can drive down bills and support investment in the economy with more secure energy supplies and more stable bills.’