Households’ £100 Green Energy Bill

November 25, 2012 by  
Filed under Green Energy News

Andrew Woodcock

THE cost of Government support for low-carbon electricity under the new Energy Bill will add less than £100 to the average household’s bills annually, Energy Secretary Ed Davey has said.

Critics claim that the legislation will send consumers’ bills soaring, by authorising ministers to put £7.6bn towards “green” power generation in 2020, up from £2.35bn this year.

But environmentalists say the Bill does not go far enough, because it does not include a target to slash carbon emissions from the power sector by 2030 although it does include the power to set a target in 2016 if it is considered necessary.

An estimated £110bn is needed in the next decade to renew the UK’s ageing electricity infrastructure, with much set to go into low-carbon power sources such as wind farms to cut emissions and keep the lights on.

The forthcoming Energy Bill, which aims to drive the investment, has been the subject of political wrangling within the coalition, with Mr Davey voicing support for long-term limits on carbon emissions by the power sector and Chancellor George Osborne backing a second “dash for gas” with support for new gas power plants as a cheap source of electricity and tax relief for unconventional shale gas exploration in the UK.

But agreement has now been reached on a series of contentious issues.

Mr Davey hailed a “durable agreement” which would allow him to introduce a Bill next week and have essential electricity market reforms up and running by 2014, as planned.

“They will allow us to meet our legally-binding carbon reduction and renewable energy obligations and will bring on the investment required to keep the lights on and bills affordable for consumers,” he said.

The Energy Secretary rejected accounts of a bitter row with the Chancellor, describing the long-running talks as a “good negotiation” leading to the two coalition parties “coming together (to) deliver the biggest boost to green energy”.

He made clear that the legislation will not rule out future abated gas plants or the exploitation of shale gas reserves through innovative “fracking” technologies in areas such as Lancashire.

Mr Davey, who said he would make a decision “shortly” on whether to allow power company Quadrilla to continue fracking near Blackpool, said: “I don’t think it’s gas or renewables. I think we need both, and actually they can be very complementary… I have been very clear and the Chancellor has been very clear that shale gas does offer an opportunity to the UK.”

Copyright 2012 Newcastle Chronicle Journal Ltd.

All Rights Reserved

Wire News provided by

Comments are closed.