Energy: Prices
Energy and Climate Change
David Mowat (Warrington South, Conservative)
To ask the Secretary of State for Energy and Climate Change what assessment he has made of the effect on energy bills of (a) the Green Deal, (b) feed-in tariffs, (c) Contract for Difference and (d) other subsidies offered by his Department.
Charles Hendry (Minister of State (Renewable Energy), Energy and Climate Change; Wealden, Conservative)
On
http://www.decc.gov.uk/en/content/cms/meeting_energy/aes/impacts/impacts.aspx
The headline results are presented in table 1. A breakdown of the separate gas and electricity bill impacts by individual policies is presented in the set of tables in annex F (from page 67) of the aforementioned document.
| Table 1: Estimated impact of energy and climate change policies on average energy (gas plus electricity) bills compared with bills in the absence of policies | |||
| Real 2010 prices | 2011 | 2020 | 2030 |
| Household | |||
| Bill without policies | £1,229 | £1,379 | £1,474 |
| Bill with policies | £1,249 | £1,285 | £1,427 |
| Impact of policies | £19 (2%) | -£94 (-7%) | -£46 (-3%) |
| Of which: | |||
| Green Deal and ECO(1, 2) | n/a | £42 | -£20 |
| Small-scale feed-in tariffs | £1 | £6 | £6 |
| EMR (CfDs and capacity payments) | n/a | £41 | £50 |
| Other policies | £18 | -£183 | -£82 |
| Medium-sized business user | |||
| Bill without policies | £1,550,000 | £1,738,000 | £1,829,000 |
| Bill with policies | £1,821,000 | £2,073,000 | £2,337,000 |
| Impact of policies | £271,000 (18%) | £335,000 (19%) | £508,000 (28%) |
| Of which: | |||
| Green Deal(2) | n/a | -£16,000 | -£16,000 |
| Small-scale feed-in tariffs | £3,000 | £15,000 | £14,000 |
| EMR (CfDs and capacity payments) | n/a | £96,000 | £117,000 |
| Other policies | £268,000 | £240,000 | £394,000 |
| Large energy intensive industrial user | |||
| Bill without policies | £8.2 to £15.6 million | £9.3 to £17.4 million | £9.7 to £18.0 million |
| Bill with policies | £8.4 to £17.5 million | £9.4 to £20.9 million | £10.8 to £24.1 million |
| Impact of policies | £0.3 to £1.9 million (3% to 12%) | £0.2 to £3.5 million (2% to 20%) | £1.1 to £6.1 million (11% to 34%) |
| Of which: | |||
| Green Deal(2) | n/a | n/a | n/a |
| Small-scale feed-in tariffs | £0 to £30,000 | £0 to £138,000 | £0 to £124,000 |
| EMR (CfDs and capacity payments) | n/a | £0 to £870,000 | £0 to £1.1 million |
| Other policies | £0.3 to £1.9 million | £0.2 to £2.5 million | £1.1 to £4.9 million |
| (1) Due to the overlap between the Green Deal and Energy Company Obligation (ECO) in the household sector, the impact of each of the two policies individually cannot be isolated. (2) Estimates of the Green Deal impact are net of the average annual loan repayment. Note: Figures may not add due to rounding. Source: DECC 2012. | |||