Energy News

Consumers must cough up for government’s ‘green revolution’

Thursday 16 July, 2009

By becca.talbot@consumerchoices.co.uk

Gas and electricity bills could rise by £253 a year over the next decade, to help the government meet its carbon emissions reduction target.

New government plans to help cut Britain’s carbon footprint could force energy bills up by £253 a year over the next 10 years, according to uSwitch.com.

The energy market overhaul could cost each household as much as £92 a year, the government estimates in its Renewable Energy Strategy white paper, released yesterday. However industry experts warned this could be closer to £250 a year.

Ann Robinson, director of consumer policy at uSwitch.com, said: “Household energy bills are going to go up. In total, consumers can expect to be paying an additional £253 on their energy bills.”

The Energy and Climate Change Secretary Ed Miliband, however, promised there will be no cost to consumers before 2015. He added that even when bills do begin to rise, the annual cost would be lower because households will be using much less energy as a result of new energy efficiency measures, such as smart meters and better insulation.

The white paper proposes a range of measures to help cut Britain’s greenhouse gases, by increasing the country’s use of renewable energy sources such as solar and wind power.

The government has calculated over £100billion of investment is needed to reform the British energy sector. The majority of the cost however, is likely to be passed onto customers by the “big six” energy suppliers, according to energy experts.

Jonathan Stearn, energy expert at watchdog Consumer Focus, said: “Government steps to tackle climate change are essential, but consumers shouldn’t have to write a blank cheque to pay for this. The cost should be shared.”

Stearn added that more protection is needed to stop the poorest households being pushed further into fuel poverty.

Chris Eagle, commercial manager at EnergyChoices.co.uk, believes customers should not be made to foot the bill: “The energy market overhaul will effectively see a ‘green tax’ whacked on to our energy bills; an extra cost that households already struggling could do with out.”

He said: “Making sure you’re on the best gas and electricity tariffs for your needs is the quickest and easiest way to cut the cost of your energy bills. You could save over £140*, by simply taking the time to compare the market.”

* Between 17 May 2009 and 15 July 2009, customers using our service saved an average of £141.27. The maximum saving was £1,583.