2 December 2008
Higher gas and electricity bills could be on the way as the government looks to meet its targets on carbon reduction, according to the chairman of the climate change committee.
Lord Adair Turner said that in order to cut greenhouse gas emissions, companies will have to invest significant amounts in renewable energy sources.
This could cause domestic energy bills to rise by more than 25% by 2020, pushing an extra 1.7 million households into fuel poverty, he warned in the committee's first report.
Matthew Sinclair, Research Director at the TaxPayers Alliance, told the Daily Express: "Ordinary people are already struggling to pay their gas and electricity bills and a large part of that cost is the result of government climate change policies."
However, Lord Turner said the adverse impact of carbon reduction efforts can be offset by improvements in energy efficiency subsidies and the provision of social tariffs.
The UK's major energy companies have put up their prices twice in the last 12 months, although some have signalled a possible reduction in bills in the spring.
Households could make immediate savings on their gas and electricity by switching to a different supplier.