Energy Bills

Energy and Climate Change – in the House of Commons at 10:30 am on 8th March 2012.

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Photo of Richard Graham Richard Graham Conservative, Gloucester 10:30 am, 8th March 2012

What assessment he has made of the likely effects on household energy bills of changes to the feed-in tariff scheme.

Photo of Gregory Barker Gregory Barker The Minister of State, Department of Energy and Climate Change

We estimate that our new, reformed scheme, upon which we are currently consulting, will add just 8 to the average household energy bill in 2020. That is around 50 less than FITs would have cost if we had continued with the previous policy. Obviously, there is a great deal of uncertainty in these numbers, which depend on future technology costs and market growth.

Photo of Richard Graham Richard Graham Conservative, Gloucester

Hard-pressed constituents of mine in Gloucester will be grateful for the Minister’s answer. Does he think there are lessons to be learned from Germany in terms of the total amount of energy consumed by households? If we replicated the amounts used in Germany, that would heavily reduce bills in this country.

Photo of Gregory Barker Gregory Barker The Minister of State, Department of Energy and Climate Change

My hon. Friend is right. In Germany, although electricity prices are higher, not least because of the support for renewables, bills are broadly comparable with those in the UK because domestic energy efficiency is much better. That is exactly the sort of transformation that we are determined to drive forward in the UK with the launch of the green deal later this year.