Climate Change: Green Energy Would Not Hike Up Household Bills, Says Climate Committee

Low Carbon Economy Would Not Hike Up Household Bills, Says Committee On Climate Change

Claims that investment in wind farms and other low-carbon technologies will add dramatically to the cost of typical household energy bills over the next decade are untrue, the Government's climate advisers said.

Policies to achieve a low-carbon economy will add a further £110 to dual fuel bills in 2020 with scope to offset this rise if energy efficiency can be further improved through measures such as more efficient lighting and appliances, the Committee on Climate Change (CCC) said.

The independent body, which advises the Government on preparing for the impact of climate change, added that wholesale gas prices were "by far" the largest contributor to rises in average household dual fuel bills between 2004 and 2010.

An analysis of households by the committee predicted that the combined gas and electricity bill for the typical household could increase from £1,060 in 2010 to £1,250 in 2020 if there is "limited" success in implementing energy efficiency measures.

The committee said its "best estimate" was that green policies would add a further £110 to bills in 2020 - made up of £100 to support investments in low-carbon power generation, with £10 needed to support energy efficiency measures such as smart meters.

The committee said there was still scope for further energy efficiency improvement through projects such as loft and wall cavity insulation and more efficient energy use of lighting and household appliances.

The projected 2020 bill could be reduced to £1,085 per household - roughly at 2010 levels - if these were successfully implemented, it said.

An analysis of the average dual fuel energy bills for a typical household showed an increase of £455 from around £605 in 2004 to £1,060 in 2010 but more than 80% of this rise was unrelated to low-carbon measures, the CCC said.

The biggest contributor to the rise was wholesale gas prices, which added around £290 to bills, with around £75 due to policies that reduce carbon emissions.

David Kennedy, CCC chief executive, said the committee had analysed the impact of investment in low-carbon power technologies including offshore and onshore wind, nuclear and carbon capture and storage. He said the cost of investing in low-carbon power technologies was "significantly" outweighed by the benefits, including a reduced reliance by the UK on imported fossil fuels.

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