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Energy Bill: Your questions answered

We answer the what, the why and the how of the Energy Bill, released today.

As the long-awaited Energy Bill finally sees the light of day the government has throw its weight behind the proposals.

The Bill will add around £100 to the average  energy bill by 2020 as a result of the ‘green levy’ firms will charge for generating from renewable sources, but it will encourage low-carbon energy production and may even incentivise energy suppliers to make us use less.

Here’s the Energy Secretary Ed Davey summing up the proposals in parliament:


Why do we need an Energy Bill?

How are we going to ensure the lights don’t go out without polluting the planet or being too reliant on overseas exports? How are we going to encourage the development of renewable industries and remain competitive?

The Energy Bill seeks to answer these questions by providing a plan for Britain’s energy producing future. However, with the consequences having a huge impact on everything from households to industry, it hasn’t been without its problems.

With the government refusing to commit to a decarbonisation target until 2016 it has thrown into jeopardy its own commitments under the Climate Change Act to cut emissions. What’s more, energy-intensive companies including heavy industry may be exempt from additional charges, unlike households.

But by allowing energy companies to charge households more for the ‘green levy’, they are encouraging renewable energy production.

So it’s bad news for households?

Not necessarily. While companies will be able to charge you more on your bills, the government insists the very same policies will make our energy cheaper, reducing bills by £94, or roughly the same amount.

Whether you believe this figure depends on who you ask, but in theory greater energy efficiency and diversifying energy production will mean less is spent importing gas.

If gas prices continue to increase (as many expect), energy bills may not go up as much as they otherwise would.

Learn more…

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