Energy secretary Chris Huhne claimed today that by 2020 the average household bill will be 7 per cent or £94 lower than if the Government were not pursuing policies to achieve energy savings and incentivise the shift from fossil fuels to alternatives.
Huhne insisted that the net saving would start to kick in from around 2013.
This assessment came as the government published its annual energy statement to Parliament and further detailed proposals for its flagship Green Deal initiative.
The government said that by the end of 2011 household electricity prices will have increased by around 16 per cent and household gas prices by 25 per cent since the start of the year, due mostly to global fossil fuel prices.
The Coalition has insisted that Government policies currently account for around 7 per cent of an average household energy bill and have contributed very little to recent price increases.
By Richard Lloyd, executive director, Which?,
It s difficult to see how hard-pressed homeowners will have confidence in how the Green Deal might work for them if the suggested savings are initially based on averages rather than on their personal energy use.
The Golden Rule was supposed to reassure people that Green Deal repayments would not exceed the savings made on energy bills. But if this is based on average figures then it could be meaningless for many.
The Government estimates that average household energy bills will be 7% lower than they would have been by 2020 because of new energy and climate polices. But this is based on the big assumption that schemes like Green Deal will appeal to consumers. If take-up is lower than expected, energy bills will be pushed up even further
By Friends of the Earth Energy Campaigner Paul Steedman
Our energy bills are rocketing because the Big Six power companies are keeping us hooked on expensive imported gas.
Government figures show that building costly and dirty fossil fuel power stations will simply pump up bills while investing in clean energy will create new jobs and ease the burden on cash-strapped consumers.
Our politicians must face the facts the Green Deal proposals must be strengthened if they are to tackle energy waste.
And Ministers must get tough on the energy giants and put the UK on the path to a clean and affordable energy future.
By Ray Cope
If we had not wasted our gas supplies on power generation we would not be hit so hard by the cost of imported gas.Its too late now to do much about it but it would probably pay to invest in synthetic natural gas.I would like to see the figures as I am sure it would be viable. In the meantime I am at a loss to understand why the government has not told Ofgem to impose a price formula of RPI-2.It was taken away when ofgem said there was adequate competition. That was clearly a huge error of judgement.
While I agree with Richard about the green deal, there’s a lot of over-simplification here of a very complex issue. My understanding is that energy companies overall profit levels are no higher than supermarkets and that we have the lowest energy prices in Europe. Also wind and solar are intermittent generation and cannot solve the enrgy issue by themselves – if the winf doesn’t blow the lights go out.
By Ray Cope
It looks like at last all the major suppliers have signed up to a simplification of tariffs which will hopefully improve competition and perhaps bring down prices a little. It does beg the question why it has taken so long for this to happen. There is a regulator with a budget of 50m a year and consumer focus with about 14m a year. What are we paying these organisations for if they cannot bring pressure to bear and sort out these issues more quickly.
By RenewableUK Chief Executive Maria McCaffery
It s common sense that if you save fuel, you save money. Our existing power plants are reliant on increasingly expensive fossil fuels, and with more wind farms on the grid, we can use the free energy of the weather when it s available, slashing our demand for costly imported gas.
The figures in the Government s Annual Energy Statement demonstrate this simple truth that green measures, far from being expensive, can actually save us money. The 18p we re paying for wind power now means our bills will be lower in the future and we ll have tens of thousands of new green-collar jobs, thanks to that investment