Skip to content

Families Face £286 Green Tax On Energy Bills

|
Nick McDermott, Daily Mail

Families will be paying almost £300 a year in green energy taxes by 2020. The levy will more than double until a quarter of each power bill goes on wind, solar, nuclear or home insulation schemes.

* Energy Secretary insisted households will be better off due to initiatives

* But families will only benefit if they buy more efficient domestic appliances

* Average bill is now £1,267 with £112 of that amount going on green taxes

* By 2020 green taxes will have risen by over 150 per cent – £286 per family

* DECC reckons households will be saving £452 a year then due to schemes

* Charity said government ’embarrassed by terrifying cost of green policies’

* Claimed it is ‘covering up’ with a ‘whitewash of wildly optimistic assumptions’

Daily Mail (UK)

Energy Secretary Ed Davey insisted last night that households will be better off thanks to the benefits of electricity-saving initiatives.

But families will be able to claw the money back only if they buy more efficient domestic appliances and boilers.

The average power bill is now £1,267 – with £112 of that going on green taxes, including an £18 wind farm subsidy.

By 2020, green taxes will have risen by more than 150 per cent, ensuring each family contributes £286, according to the Department for Energy and Climate Change.

green graphic

 

It reckons that by then households will be saving £452 a year by taking up schemes to lower energy use and by switching to more efficient kettles, fridges and TVs.

The ministry also hopes smart meters, which track energy consumption, will alter consumer behaviour and lower consumption.

But John Constable, of the charity Renewable Energy Foundation, said: ‘DECC is clearly embarrassed by the terrifying costs of its ever-growing range of green policies, and is covering up with a whitewash of wildly optimistic assumptions about energy efficiency.

‘If electricity prices increase by a third, as DECC admits they will, it is vanishingly unlikely that better dishwashers, kettles, and fridges, even assuming households can afford them, can cancel out the increases and deliver lower bills.’

Mr Davey said his projected savings would mean that households would end up paying £166 less than if the green policies had not been introduced in the first place.

‘Global gas price hikes are squeezing households,’ he added. ‘We are doing all we can to offset these global energy price rises and, while we have more to do, this new study shows that our policies are putting a cushion between global prices and the bills we all pay.

‘The analysis shows our strategy of shifting to alternatives like renewables, and of being smarter with how we use energy, is helping those that need it most save money on their bills.

‘The poorest who take advantage of the help that is available through the initiatives we have on offer stand to make the highest savings, from the warm home discount to our new regulation on energy firms to force them to improve the energy efficiency of fuel poor households.’

DECC claims ‘the large majority of households’ will benefit and even those that do not add insulation or take advantage of energy rebates will be £15 better off.

Caroline Flint, Labour’s energy spokesman, said last night: ‘The Government’s underhand attempt to mask the real impact of its policies on families’ energy bills is shameful.

‘At a time when hard-pressed families and pensioners are seeing their incomes squeezed, only this out-of-touch Government could expect people to fork out thousands of pounds on new TVs, fridge freezers and washing machines just to save a few pounds every few months on their energy bill.’

Full story