Environmental policies not to blame for rising UK fuel bills, says CCC
The Committee on Climate Change (CCC) has called claims that low-carbon technology will add to already rising UK fuel bills are wide of the mark.
The Committee on Climate Change (CCC) has called claims that low-carbon technology will add to already rising UK fuel bills are wide of the mark.
After conducting the first in-depth analysis into the impact of meeting carbon budgets on household energy bills, the Committee concluded that recent bill increases are primarily due to increased wholesale gas costs.
“We were keen to provide a dispassionate analysis of household bill impacts in what has become a politically controversial area. We found that bills have increased primarily in response to increased wholesale gas costs and not due to environmental policies,” said Chair of the Committee on Climate Change, Lord Adair Turner.
The analysis found that the typical household bill could rise from £1,060 to £1,250 by 2020, with CCC members noting that £100 of this rise would be to support investment in low-carbon power capacity and a further £10 being provided to promote energy efficiency in homes. Further increases will be required to support grid investment and possible gas price movements.
However, the CCC report also cited potential opportunities for bill payers to reduce their fuel costs by making energy efficient choices, such as installing better insulation and making more efficient use of heating controls, which has the potential to reduce gas consumption by 8 percent. Additionally the CCC recommends the replacement of lights and appliances for more efficient models to reduce electricity consumption by as much as 19 percent.
If these improvements can be achieved, then energy bills in 2020 are projected to be broadly at 2010 levels, according to the CCC. However, the Committee also stresses the need for new policies with strengthened incentives in order to encourage energy efficiency improvement.
To read the full report click here
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Image 02: Climate Action Stock Photo