Low carbon drive ‘cuts household bills’

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Britain’s low carbon energy revolution is usually actually saving money for households, a report says.

Households make a net saving of £11 a month, according to analysis by the Committee on Climate Change.

the item calculates that will subsidies to wind as well as solar are adding £9 a month to the average bill, nevertheless that will rules promoting energy efficiency save £20 a month.

The finding will be challenged by groups which say the UK spends too much on renewable energy.


nevertheless the committee, which advises the government, stands by its analysis, as well as forecasts a continuing trend of downward prices thanks to low carbon policy.

The trend is usually being driven by government as well as EU standards for gas boilers as well as household appliances like fridges as well as light bulbs. These bring down carbon emissions as well as bills at the same time.

the item means households don’t need to try specially hard to reduce energy usage – the item just happens when they replace their old freezer.

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The report says bills are about £115 lower in real terms since the Climate Change Act in 2008, having risen around £370 by 2004 to 2008 as international gas prices rose.

Gas as well as electricity use have been cut by 23% as well as 17% respectively, saving the average household £290 a year.

Many of the easy savings on highly inefficient devices have already been made, nevertheless the committee says the item has been assured by manufacturers that will more can be done.

The authors predict an annual bill reduction of £150 by 2030, driven by a mass switch to LED lights, as well as full take-up of more efficient condensing gas boilers.

This specific, they say, would likely more than compensate for another £100 a year rise by increased renewables deployment.

“What’s interesting,” said the committee chair Lord Deben, “is usually that will people aren’t having to strive to make these savings. They could save much more energy if they consciously set about the item.”

Stable bills

One huge area for improvement is usually home insulation. The committee says to meet its target to abolish fuel poverty, the government must double current investment.

Last week BBC News revealed that will in order to meet targets to make all homes energy efficient, 25 million homes need to be refurbished by 2050 – that will’s 1.44 homes every minute, day as well as night.

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A recent report by the House of Lords Economic Affairs Committee said energy bills had been pushed up by “poorly designed government interventions in pursuit of decarbonisation”.

the item said energy security rather than decarbonisation should be the priority. “the item’s a very high cost that will is usually being paid [for renewables],” said Lord Hollick, the committee chair.

The climate committee said This specific analysis was unfair because the item wrongly blamed renewables for rises in wholesale energy costs between 2004-2008.

the item insists that will by 2008, when renewables policy started out to bite, household bills have been more or less stable.

Lord Deben said that will, contrary to favorite opinion, household bills within the UK were around average for Europe, although many households could still save £0-300 a year switching by standard variable tariffs to the lowest available tariffs.

nevertheless he agreed with the Lords committee that will industry bills were too high, as well as urged ministers to examine whether the transmission networks or the wholesale electricity market are to blame.

The government welcomed the report as well as said brand new policies on insulating homes would likely emerge before long.


Claire Jakobsson by the manufacturers’ organization EEF said: “While the Committee is usually right to say low-carbon policies may not be the only factor reducing industrial output in some sectors, we believe the item is usually a significant one – as well as one where government can act, especially in respect of costs which our competitors don’t face.”

Iain Wright MP, Chair of the Commons Business as well as Energy Committee, said: “The government must be mindful of the burden that will decarbonisation policies can place on businesses as well as ensure that will they remain competitive.

“[nevertheless] the big energy companies are too quick to blame green policies by government for unjustifiable cost increases. There are enormous opportunities within the UK moving to a low carbon economy.”

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