RenewableUK Welcomes Official Figures on Energy Bills

RenewableUK has welcomed new official figures which show that renewable energy provides a much cheaper way to generate electricity for British households than gas.

The Department of Energy and Climate Change has published a new report which sets out the impact of climate and energy policies on consumer bills. It says annual domestic energy bills are £64 lower this year than they would have been without green policies. The study also shows that in 2020, as a result of green measures, annual domestic bills will be £166 lower than the do-nothing scenario.

The report highlights the fact that the wholesale cost of energy, which is largely determined by international fossil fuel prices, is by far the biggest part of all our fuel bills, accounting for nearly half (47%) of what we have to pay this year. The study says at least 60% of the increase in household energy bills between 2010 and 2012 was due to rising wholesale energy prices. In contrast, the cost of energy and climate change policies, including energy saving measures and encouraging investment in renewables, currently accounts for just 9% of bills.

RenewableUK’s Chief Executive Maria McCaffery said:

“These official figures prove that when gas prices shoot up, the fuel bills that land on the doormats of over 26 million UK households go through the roof. During this cold weather, today’s report offers a very timely reminder of the high price we’re all having to pay for our dependence on eye-wateringly expensive fossil fuels.

“The figures are quite clear for all to see – if we switch to more renewables to generate electricity, the cost is much lower. We can control that cost rather than leaving ourselves exposed to the wild fluctuations of international fossil fuel prices. Home-grown renewables such as wind gives us a very important asset: energy security at a price we can predict.

“Just last week the official regulator Ofgem highlighted how low the cost of wind energy is – less than 3p per household per day. Today’s new figures show that the measures being taken by the Department of Energy and Climate Change to encourage investment in renewables, and to use energy more efficiently, are already keeping household bills 5 per cent lower than they would have been without those policies. In 2020, the savings will be even greater, with bills 11% lower as a result of green measures. So whenever we invest in building a low-carbon economy, using technologies such as wind, wave and tidal energy, the dividends we reap are enormous, in economic as well as environmental terms.”

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Press release, March 27, 2013; Image: DONG Energy