Energy: Prices
Energy and Climate Change

Photo of David Mowat

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.

Photo of Charles Hendry

Charles Hendry (The Minister of State, Department of Energy and Climate Change; Wealden, Conservative)

On 23 November 2011, alongside the annual energy statement, DECC published an assessment of the impact of climate change and energy polices on energy prices and bills for an average household, medium-sized business user and large energy intensive user in 2011, 2020 and 2030, available online at:

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.

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