High Energy Bills for ‘Five Years at Least’
Writes Dan Drage dan.drage@consumerchoices.co.uk
Energy bills will be kept high for five years by the cost of shifting from fossil fuels to renewable sources.
John Hutton, the Business Secretary, will today outline plans for a seismic movement away from fossil fuels to wind, solar and wave power, but he will also warn consumers their bills will be raised to pay for this program.
The overhaul is likely cost in the region of £100 billion, and will require a 5 year sustained period of high energy bills in order to bring it to fruition. This five year period is likely to start in 2015.
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"At the end of the day, we as consumers, we pay for the product. That's how it is"
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During this period, homeowners will be given financial incentives to fit their roofs with solar panels, and a 90% rise in the use of ground and air-source heat pumps that provide “free” heat by tapping the warmth in the air or the earth is anticipated.
Innovative ‘feed in tariffs’ are also likely to be introduced, allowing surplus electricity generated by homeowners to be sold back to the national grid.
On the subject of these radical reforms, Mr. Hutton had the following to say:
“The scale of this plan is unprecedented in the history of our country since the Industrial Revolution, but there is no way of making these changes without there being some impact on the natural environment”
However, when quizzed about rising fuel costs, Mr Hutton offered a more pragmatic angle:
“At the end of the day, we as consumers, we pay for the product. That's how it is.”
The “big six” energy companies have given warning energy bills, which have already risen more than 15% this year, will rise again within the next few months because of the rising price of crude oil.
Chris Eagle, Commercial Manager at Energy Choices, is torn:
“The necessity to align our energy sources in a carbon neutral fashion is unquestionable, but the associated costs are likely to cripple consumers already feeling financial pressures not experienced since the early 90s.”
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