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Government green plans to push energy bills up by £95

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 23 November 2012  |  Comments 20 comments

Energy bills are set to rise again, this time to fund green energy investment.

Government green plans to push energy bills up by £95

Gas and electricity bills are about to go up as the Government sets out plans for energy companies to charge customers more to fund renewable energy projects.

The new proposals, to be announced next week in the Energy Bill, suggest average energy bills could increase by £95.

This is because energy companies will be able to increase the amount they charge customers from £2.35 billion to £9.8 billion by 2020 in order to fund the investment.

Rising bills

The Department for Energy and Climate Change (DECC) said that the average increase to consumer bills will be £95 a year - or 7% - by 2020 but critics have suggested that figure could be even higher. 

Almost all the big six energy providers have announced hikes in energy bills recently, despite several such as Centrica (which owns British Gas), also making big profits this year.

So the news UK energy bills are set to rise even more is not expected to go down well. However, the Government says by the end of the decade new energy resources could push down the overall cost, counterbalancing the extra charged for renewable investment.

Renewable energy

The reason this funding is increasing is to reduce our dependence on using gas, which is to be slowly replaced by renewable energy sources, such as wind and nuclear power.

But environmental groups have also criticised the plan which will go against Britain’s climate change commitments. The Government has also delayed making a decision on setting a target for carbon emissions until 2016 – after the next election.

Ed Davey, the Energy and Climate Change Secretary, said: “The decisions we’ve reached are true to the Coalition Agreement, they mean we can introduce the Energy 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.”

More on gas and electricity:

Energy companies keep £1.2 billion of our savings

Investigation launched into ‘fixed’ gas prices

Co-operative Energy to cut its electricity bills

Energy firms to be forced to put customers onto cheapest deals

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Comments (20)

  • leaseholdreform
    Love rating 0
    leaseholdreform said

    How comes in China their governments are using salt to power their new nuclear processors and we in the UK still want to use URANIUM even though salt is about 1000% safer??

    Report on 23 November 2012  |  Love thisLove  0 loves
  • fenemore
    Love rating 251
    fenemore said

    Once again our Government is wedded to a complete myth and WE are all paying the price. It really makes you want to bang heads together. There is NOTHING our country ( a pimple on planet earth ) can do that will make one iota of difference.

    If our "leaders" thinks by persuing this bonkers strategy, they can shame other countries into "doing the right thing", they are utterly and completely naive. We really are the laughing stock of the world!

    Report on 23 November 2012  |  Love thisLove  2 loves
  • andyanddeb
    Love rating 0
    andyanddeb said

    I would gladly go in to debt to pay for the governments energy strategies. oh wait, i already have.

    I really need another energy price rise because i would much rather be supposedly saving the planet than doing something stupid with my money like eating or buying clothes.

    Report on 23 November 2012  |  Love thisLove  0 loves
  • ibelieveanything
    Love rating 5
    ibelieveanything said

    Here we go again.Its the last thing people need.This proves that our leaders are out of touch with reality.Howeverthis smacks of the same con as water meters.Someone is making mega bucks out of all of this and it is we plebs that are paying for it.Bring on the revolution.......

    Report on 23 November 2012  |  Love thisLove  0 loves
  • ibelieveanything
    Love rating 5
    ibelieveanything said

    Oh and by the way when nuclear energy first came along the government said it would be cheap ......More lies then....

    Report on 23 November 2012  |  Love thisLove  0 loves
  • RagingBull
    Love rating 0
    RagingBull said

    Sigh....

    1) Energy prices have been steadily increasing as a resulting of our reliance on gas, more of which we are having to import.

    2) It's a complete fallacy that nuclear is cheaper...and it doesn't even factor in the unaccounted for costs of dealing with the high level radioactive waste that just gets stored whilst someone hopes that the future comes up with a solution. Anyone who's in favour of expanding nuclear energy should ask themselves if they'd be happy to have a nuclear power station situated anywhere near their home.

    3) The problem of rising energy prices is that it is all about companies making obscene profits (at our expense), many of which have been sold off to European companies! They don't have to charge as much as they do...

    4) There is absolutely nothing wrong with renewable energy and long term in makes sense, regardless of whether it is to reduce carbon emissions or not, as it gives us long-lasting and safe energy security as we're not reliant on imports and we're not using dangerous materials. Offshore wind, tidal, wave, geothermal and others we've not even thought about yet - we have an abundance of energy around us (that is free to source!) - all we need to do is develop the tech to harness it. So what's happened to this nation of great innovators and engineers? Why are we still stuck in the late 19th century and using ideas formulated then? Have we lost our ability to develop new technology to make use of these renewable supplies? There's a powerful lobby out there that want us to remain reliant on nuclear, gas, oil, coal - because it makes people money and runs an economy. The nation that develops the technology to harness renewable energies, however, will be the successful state of the future.

    Report on 23 November 2012  |  Love thisLove  0 loves
  • Aitken B
    Love rating 146
    Aitken B said

    Once again HMG doing what it can to put up inflation and this one is a tripple whammy.

    1 It puts our unavoidabe costs up and fuels (sorry) inflation

    2 It forces us all to provide the energy companies with capital so they can make and sell expensive energy to us and make even bigger profits - all paid for by us.

    3 It supposedly reduces our CO2 production which is supposed to "fix" Global Warming when, even if they are successful in achieving their target of reducing our CO2 production by 50%, it will reduce global atmospheric CO2 from 400 PPM (Parts Per Million) to 399.84 PPM which, even if CO2 were the cause of Global Warming, will have absolutely no effect whatsoever.

    You've got to admire them though - Three absolutely usless or damaging effects from a single stroke.

    Report on 23 November 2012  |  Love thisLove  0 loves
  • cee100
    Love rating 0
    cee100 said

    We already have renewable energies in place yet see no reflection of this in our billing. We need to move forward and ditch the oil and the nuclear plants but stop pulling the wool over our eyes when it comes to money we aren't sheep.

    It's time they got to grips with the debt and realise what we already have, it will never happen as there isn't enough money in circulation to cover the bills. Draw a line, cancel the debt, use the planets resources to fuel it cleanly, efficiently and put all this technology to proper use and allow us all to actually live a life instead of exist in one.

    Report on 23 November 2012  |  Love thisLove  0 loves
  • Pechis
    Love rating 5
    Pechis said

    I'll gladly pay an extra £95 a year, a small price to pay to try to ensure that my kids and their kids have a half decent world to live in.

    What is the alternative? Relying on ever more expensive fossil fuels imported from politically unsafe countries who can turn the tap off at any minute, when there are other countries in the world with bigger wallets than us who will be able to afford the ever dwindling, more expensive and ultimately finite fossil fuels at any price.

    Invest in energy efficiency and renewables, creates jobs, protects us from energy insecurity and makes for a better enviroinemtn, that is a triple whammy!!!

    Report on 23 November 2012  |  Love thisLove  0 loves
  • dnewsome
    Love rating 1
    dnewsome said

    A couple of days ago the government was to make the energy companies put us on their cheapest tariffs, now they are telling them that they can help themselves to another £100 plus from us. Am I missing something here?

    Report on 23 November 2012  |  Love thisLove  0 loves
  • charles125
    Love rating 53
    charles125 said

    The true facts re: renewable energy are these.

    If every available field was planted with biomass plants, every roof in Britain had solar panels and every possible site developed for wind farms, this would produce just only

    10 - 15% of our energy needs.

    Wind turbines are hugely expensive both in terms of construction and content. They have very expensive electronic circuitry and use vast amounts of copper. The alternators need very expensive maintenance/ repair over time and of course no electricity is produced on calm or very windy days ie most of the time. It is doubtful whether they produce as much energy over their working life as it costs to make/transport and construct them, quite aside of their eyesore locations. New roads also often have to be constructed to fairly remote locations.

    A river Severn tidal barrage on the other hand will produce 5% of our energy needs.

    Fusion power experiments expect to exceed break-even point very soon indeed ie making more energy than they take in. Much more money should be put into this kind of research to get commercial development as soon as is absolutely possible. Fusion power is clean, totally safe and has no environmental pollution except for construction. The most promising research is multiple lasers on hydrogen fuel cells. Plasma fusion power research is many years behind. There is no reason why we can't have working fusion power generators within 10 - 15 years, if not sooner. These will provide a much better environmentally totally friendly source of abundant power.

    But of course there is a vested interest in promoting foreign investment in wind farms that will be obsolete almost before they are built, with foreign energy companies out to make huge profits and killings on the basis of political exploitation, with us the consumers being charged a premium price for this wind farm energy.

    The sooner they drop ALL of the useless parts of the green agenda and sort out tidal barrage power and fund fusion research the better for all of us!!!!

    Report on 23 November 2012  |  Love thisLove  1 love
  • exportlink88
    Love rating 28
    exportlink88 said

    A hundred years ago, the UK public sector was less than 20% of GDP. Today, it is 53%.

    Translated,

    it used to be : £4 for me, £1 for you.

    Today, it is : £1 for me, £1 for you.

    Before long, it will be : £1 for me and £2 for you.

    When is this going to stop ?

    Perhaps

    Ours not to reason why

    Ours but to do and die

    Report on 24 November 2012  |  Love thisLove  0 loves
  • Alan125
    Love rating 0
    Alan125 said

    Charles125 please get your facts right before posting:

    http://www.guardian.co.uk/environment/2012/sep/14/uk-windfarms-generate-record-power

    Wind farms gave us 10.8% of the energy we needed a record at one point in sept. So your figs dont add up mate. Renewables are they only way forward, if we wish to keep this planet healthy for future generations. Plus oil and gas are not going to be there much longer.

    Report on 24 November 2012  |  Love thisLove  0 loves
  • Meanmachine2
    Love rating 39
    Meanmachine2 said

    The only reliable green energy is Tide power as it is powered by the universe & that runs day & night.

    Years ago on tidal rivers the old folks built large enclosed lakes that filled up as the tide came in.

    As the water was channeled in it turned water wheels that drove Mills to grind corn.

    Then as the tide went out ,once again the water drove the water wheel.

    Anybody who has parked in the large car park at Looe in Cornwall has parked on where the lake used to be. Years ago I actually sailed a boat on it before it was filled in.

    The improvement of such a simple idea seems to be beyond the minds of the so called modern generation. Perhaps because they are driven by the word profit as they make more money from putting up wind generators then by selling the electricity.

    Report on 24 November 2012  |  Love thisLove  0 loves
  • MK22
    Love rating 169
    MK22 said

    Meanmachine2, quite right, if necessary backed by a pumped storage station to even out the power generation. BUT, completely wrong if the scheme wipes out an entire ecosystem like the hair-brained scheme to dam the Severn Estuary.

    Report on 24 November 2012  |  Love thisLove  1 love
  • coloratura
    Love rating 81
    coloratura said

    So last week the Government announced with a great fanfare and flourish that they were going to "force" the energy companies to offer us the lowest rates they have (only 4 to be offered now) - and then this week, HEY PRESTO, they announce that they are going to push up bills by £95 for so-called "green energy". Of course this will make their friends/directors and probably themselves, billions in extra profits. My late husband worked for an energy company so I learned much about how they operate e.g. the Government minister who helped British Gas to buy the site on which the O2 is now built for a relatively small amount of money and who allowed British Gas to become privatised became - guess what - a member of the Board of Directors of British Gas. All of this is just more profit making for those that already have lots and is just GREED. Time to move abroad to a country that has a lot of sunshine I think.

    Report on 25 November 2012  |  Love thisLove  0 loves
  • Meanmachine2
    Love rating 39
    Meanmachine2 said

    You have to remember the mantras of the current government.

    The first is to turn public money into private profit.

    The second is that greed is good.

    Report on 25 November 2012  |  Love thisLove  0 loves
  • PoohBah
    Love rating 23
    PoohBah said

    If you watch EastEnders, the power supply problems are all your fault:

    http://youtu.be/UTM2Ck6XWHg

    Report on 26 November 2012  |  Love thisLove  0 loves
  • PoohBah
    Love rating 23
    PoohBah said

    @leaseholdreform: when you say "salt" you have just picked one word out of context. They are not necessarily referring to common salt, or sodium chloride; there are many kinds of salt, and the one in question is most likely to be molten thorium salt, which you definitely would not want to sprinkle on your fish and chips. It can be used as a coolant - cool being a relative term here, as the boiling point of most salts is in excess of 1400°C - or as a fuel in its own right. Molten sodium chloride could conceivably be used as a coolant, but it is highly corrosive.

    Report on 26 November 2012  |  Love thisLove  0 loves
  • Seaboot
    Love rating 2
    Seaboot said

    Guess I'm a bit slow and do not understand the concept---I pay extra money to a private utility company so they can--what? Sell me even more expensive electricity! Should it be the utility companies investing in their own research and development reducing their need to rely on foreign imports. Hopefully getting their production costs down so their shareholders are happy and maybe sell to their customers at a rate which does not mean we have to live in cold houses. Whatever we as consumers will remain well down the order of utility companies priorities

    Report on 06 December 2012  |  Love thisLove  0 loves

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