Greener BeeGreen ElectronicsGreen levies on energy bills to double by 2020, official estimates show

Some of the policies are expected to have the effect of slightly reducing
wholesale power prices, but this will lessen the overall impact by just £5
today and £17 by 2030, the analysis shows.

Five quick tricks saved this family £400 a year on household bills

Ministers insisted that the overall effect of all Government policies would be
to leave energy consumers significantly better off, due to efficiency
schemes and other regulation that should result in households using less

A typical household’s gas usage is expected to fall by 5 per cent and
electricity usage by 14 per cent by 2020 as a result of the policies. This
should more than outweigh the cost of all the green levies, and the funding
of energy efficiency schemes, leading to average bills that are £50 lower
than today and £92 lower than they would otherwise have been, ministers

But critics warned that the efficiency savings were not guaranteed, would
require households to spend huge sums on new energy-efficient equipment, and
would vary greatly from house to house, with some missing out on schemes

“It’s all very well the Government saying that because of its policies
energy bills will be coming down, but these heroic assumptions rely upon
hundreds of thousands of households buying new energy efficient fridges and
washing machines,” Richard Lloyd, executive director of Which? said.

Ministers calculate a household will save £276 through using less energy by
2020, compared with a world without Government policies.

This includes savings of £30 due to buying more efficient TVs and £25 from
upgrading consumer electronics.

It also assumes savings of £26 from households voluntarily opting to use less
energy after having “smart meters” installed that show their consumption,
and £47 in efficiency savings as a result of energy efficiency schemes prior
to 2013.

Peter Atherton, energy analyst at Liberum Capital, said the estimates of the
impacts of renwables were “disingenuous” and noted energy prices would still
have to rise to pay for the new subsidies, even if overall bills didn’t.

“The unit cost will be rising very steeply but people will just use less of
it,” he said.

The £92 estimated savings for 2020 are already significantly less than a £166
saving estimated in a report last year, largely because gas prices are no
longer expected to rise as much as had been thought.


“Feed-in-tariffs” (subsidies for household renewables)
2014: £9
2020: £14
2030: £13

“Renewables Obligation” (subsidies for large wind, solar,

2014: £36
2020: £48
2030: £30

“Contracts for difference” (subsidies for wind, solar, biomass
and nuclear)

2014: £0
2020: £30
2030: £89

“Capacity market” (subsidies for power plants to back up
intermittent renewables)

2014: £0
2020: £12
2030: £14

Carbon taxes
2014: £7 for EU tax, £16 for UK
2020: £7 for EU tax, £30 for UK
2030: £80 across EU and UK taxes


2014 – £68
2020 – £141
2030 – £226

*The Department of Energy and Climate Change assumes these policies will also
go some way to dampen wholesale prices

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