DECC’s latest analysis of the impact of energy and climate change policies on household bills has been published today. The report estimates that household energy bills will be on average 11% or £166 cheaper in 2020 than they would have been if the policies had not been in place.
The report comes at a time when the average household energy bill has hit an all-time high of £1,353 a year, while British Gas warned last October that a further £60 could be added onto household bills this year, at least in part due to the cost of Government policies to ensure a clean and energy-efficient Britain.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “This report is a snapshot based on what DECC knows today – and this will keep changing and updating over the coming years. However, the underlying message is clear – there will be winners and losers as a result of the Government’s energy policies. The winners will be those who take action to make their homes as energy efficient as possible to cushion themselves from the impact of policies on their bills.
“As far as consumers are concerned, the writing really is on the wall. While DECC is saying that households will benefit from its policies overall, the fact is that this will only be the case if they adapt their behaviour. This means taking advantage of schemes such as Green Deal, which can help them to ‘future-proof’ their homes.
“This is why it’s also important that Ofgem moves ahead swiftly with its market reforms and ensures that they are hitting the mark, as consumers will need the protection of a strong, competitive market to help keep energy prices under control. The fact is that we are all facing an uncertain future and energy affordability will continue to be a huge consumer concern – the priority has to be to help households to grasp the facts, understand the solutions and to adjust their behaviour as quickly as possible.”
DECC announcement Wednesday 27th March, 2013: Policies are putting a cushion between energy prices and household bills.
Based on a medium user consuming 3,300kWh electricity and 16,500 kWh gas per annum paying by direct debit with bill sizes averaged across all regions.
http://www.centrica.com/index.asp?pageid=29&newsid=2588 British Gas pricing announcement 12th October, 2012. In the section ‘Why prices are rising’ it says: “There are other costs behind energy bills, and these are also increasing. Britain’s national grid requires a major upgrade, which is being funded through energy bills, and the costs of the Government’s policies that will ensure a clean, energy-efficient Britain, are also rising. Together, these have added around £50 to the cost of supplying the average customer’s home this year, and are expected to add nearly £60 to the cost of supplying the average customer’s home next year.”
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