Energy News

Consumers "must take control" of energy bills says Huhne

By Martin Fagan - news@consumerchoices.co.uk

Despite announcing “carbon saving” measures that will double fuel bills, Chris Huhne says consumers must switch to save.

Consumers must take control of their energy bills in order to improve the market in the short-term, says energy secretary Chris Huhne.

Following an announcement from the Department of Energy and Climate Change (DECC) of a “carbon tax” on emissions and a hugely ambitious target for the UK to cut greenhouse gas emissions by 50% by 2025, many commentators predict household energy bills will double in the next 10 years.

Despite these claims, Huhne - currently at the centre of claims he persuaded someone else to take speeding penalty points on his behalf - said consumers could stay one step ahead of price rises by switching suppliers. Writing in the Daily Telegraph, he said the proposed reforms would end Britain’s reliance on fossil fuels

“We must address the underlying problems of fossil fuel addiction and chronic dithering over investment,” said Huhne. “In the short run, we want consumers to take control by switching supplier. [Energy regulator] Ofgem calculates consumers can save up to £200 a year by shopping around for the best deal.”

The energy secretary said the UK had an “imbalanced portfolio of generation” with not enough nuclear and renewable energy and too heavy a reliance on gas, with most of the UK’s electricity generated by these types of power stations.

The price of this commodity was volatile, and when wholesale gas prices rise, so does the cost of living in Britain. As 60% of the world’s proven gas reserves are in Russia and the Middle East, Huhne believes the UK is at the mercy of buying fuel at an inflated cost, so investment in alternative sources of energy made sense, even if it came at a price.

“This money has to come from somewhere,” said Huhne. “With 99% of Britain’s energy supplied by just six companies, do not expect to find an easy escape.

“Not even the ‘big six’ energy companies are big enough for the challenge. Businesses are not charities; they will not invest without a realistic expectation of return.”

In terms of investment, Ofgem estimates the UK needs £110billion of electricity investment by 2020, which is the equivalent of £30million a day for 10 years. According to the United Nation's Department of Economic and Social Affairs, world governments must invest 3% of world GDP - about £1.2trillion in 2010 - annually for 40 years to stop climate change and famine.