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15/12/2011
Fossil Fuel Costs Not Green Tech Causing Hikes
A report from a UK committee on climate issues has found that energy bill increases are caused primarily by rising cost of gas, not environmental policies.
The analysis from the Committee for Climate Change (CCC) is the first comprehensive analysis of the impact of meeting carbon budgets on household energy bills.
The Committee said its conclusion was that recent bill increases were primarily due to increased wholesale gas costs.
A spokesman for CCC said the Committee’s findings disproved repeated claims that recent bill increases were due to environmental policy costs along with ideas that major investments in low-carbon power capacity will drive dramatic bill increases over the next decade, which some said would be as high as £3,000.
Lord Adair Turner, Chair of the Committee on Climate Change said:
“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.
"Over the next decade, we anticipate a rise of around £100 in the average bill as a result of investment in low-carbon power capacity, which will benefit the UK in the long run. And if we introduce new polices to stimulate energy efficiency improvement then bills in 2020 could broadly be contained at current levels.”
Bills are projected to increase by around £110 over the next decade to support investment in low-carbon power capacity and energy efficiency in homes. Further increases will be required to support grid investment, and may be required depending on gas price movements.
However, the Committee said there were opportunities for further energy efficiency improvements.
The CCC said Insulation and more efficient use of heating controls could reduce gas consumption by around 8% while replacement of lights and appliances with the most efficient models as the stock turns over could reduce electricity consumption by 19%.
"If these improvements can be achieved, then energy bills in 2020 are projected to be broadly at 2010 levels. However, the Committee stresses the need for new policies with strengthened incentives in order to encourage energy efficiency improvement," the committee said.
(DW)
The analysis from the Committee for Climate Change (CCC) is the first comprehensive analysis of the impact of meeting carbon budgets on household energy bills.
The Committee said its conclusion was that recent bill increases were primarily due to increased wholesale gas costs.
A spokesman for CCC said the Committee’s findings disproved repeated claims that recent bill increases were due to environmental policy costs along with ideas that major investments in low-carbon power capacity will drive dramatic bill increases over the next decade, which some said would be as high as £3,000.
Lord Adair Turner, Chair of the Committee on Climate Change said:
“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.
"Over the next decade, we anticipate a rise of around £100 in the average bill as a result of investment in low-carbon power capacity, which will benefit the UK in the long run. And if we introduce new polices to stimulate energy efficiency improvement then bills in 2020 could broadly be contained at current levels.”
Bills are projected to increase by around £110 over the next decade to support investment in low-carbon power capacity and energy efficiency in homes. Further increases will be required to support grid investment, and may be required depending on gas price movements.
However, the Committee said there were opportunities for further energy efficiency improvements.
The CCC said Insulation and more efficient use of heating controls could reduce gas consumption by around 8% while replacement of lights and appliances with the most efficient models as the stock turns over could reduce electricity consumption by 19%.
"If these improvements can be achieved, then energy bills in 2020 are projected to be broadly at 2010 levels. However, the Committee stresses the need for new policies with strengthened incentives in order to encourage energy efficiency improvement," the committee said.
(DW)
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