Figures published by the Office for National Statistics have revealed that energy prices have rocketed in the past 10 years despite little change in the average home’s usage figures.
Since 2003, the price of gas has risen by 190% and the price of electricity had increased by 120%. During this time the consumer price index, which measures the cost of consumer goods and services, rose by close to 30%.
Green levies to be cut
In response to growing pressure on the government and energy companies to drive gas and electricity bills down, the Treasury is expected to announce a reduction in green charges during it’s December statement.
These levies, alongside social schemes, have been partially blamed by energy companies for increasing consumer bills.
Speaking at yesterday’s Energy Select Committee hearing, Chief Executive of E.ON, Tony Cocker, said the levies amounted to a “stealth tax” on consumers.
He later admitted he hadn’t worked out exactly how much they added onto energy bills, but added that any savings would be passed on to households.
No decision on where costs would be recuperated
Energy Minister Michael Fallon said the UK’s green energy obligations were behind avoiding power cuts and keeping bills affordable, in terms of priorities.
He added that no decision had been taken with regards to where the extra money would be sourced from. Deputy Prime Minister Nick Clegg had previously suggested it be taken from general taxation.