Several newspapers, most prominently the Daily Telegraph, are pointing the finger at “green taxes” today, after British Gas blamed policy costs for its latest energy bill price rise. The UK’s largest utility is raising its electricity prices by 12.5% and scrapping its dual-fuel discount, adding £76 to customers’ average bills. The claims revive the long-running debate over energy bills and the impact of government policy. This debate typically ignores the significant savings that have resulted from energy efficiency policies to lower demand, focusing only on the smaller costs of supporting the development of low-carbon electricity. The Telegraph’s frontpage splash says: “Green taxes adds £150 to home energy bill”, above an article that goes on to say: “Green taxes will cost households almost £150 from next year, British Gas has claimed.” Between 2004 and 2016, the CCC says improved energy efficiency helped cut average bills by £490, with £290 of that saving coming since 2008. These numbers are rarely mentioned during the energy bills debate. Crucially, the CCC says there are still cost-effective energy efficiency savings available, worth an average of £150-£210 by 2030. These extra savings – which will only be unlocked with more ambitious energy efficiency policies – could more than offset an expected £95 increase in policy costs over the same period.
Carbon Brief 2nd Aug 2017 read more »
The cost of green taxes on energy bills will more than treble over the next five years, the official economic forecaster has said. The Office for Budget Responsibility said that cost of the subsidies, which are levied on household and business energy bills, is expected to rise from £4.6billion in 2015-16 to £13.5billion in 2021-22. It comes after British Gas claimed that green taxes will cost households £150 from next year as it blamed the Government for a huge rise in electricity bills. British Gas forecast that the cost of the subsidies, which are used to fund renewable sources of energy such as wind and solar, will hit £149 next year having risen by two-thirds since 2014.
Telegraph 2nd Aug 2017 read more »