Energy and Climate Change written question – answered at on 12 October 2011.
To ask the Secretary of State for Energy and Climate Change what his most recent estimate is of the annual average (a) proportion and (b) cash amount by which the energy bills of domestic consumers are increased in order to finance and subsidise the provision of renewable energy.
DECC's last published assessment in July 2010, available online at:
http://www.decc.gov.uk/en/content/cms/about/ec_social_res/analytic_projs/price_bill_imp/price_bill_imp.aspx estimated that the renewables obligation and feed-in-tariff scheme were adding £21 (2%) in total to the average household energy (gas plus electricity) bill in 2010 and this was estimated to increase to £51 (5%) in 2015 and £105 (9%) in 2020 (all in real 2009 prices).
As explained in the July document, these estimates do not take account of the potential offsetting impact from higher levels of renewables pushing down wholesale electricity prices, which previous modelling by Redpoint for DECC suggested could be around £6/MWh on average over the period 2010-20. They also do not take account of changes to energy and climate change policies announced since July 2010.
An updated assessment of the impact of energy and climate change policies on the energy bills faced by households and businesses will be published alongside the next annual energy statement.
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