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Energy: Policy

House of Lords written question – answered on 29th November 2011.

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Photo of Lord Stoddart of Swindon Lord Stoddart of Swindon Independent Labour

To ask Her Majesty's Government whether, in the light of reports that a new international climate change treaty is unlikely to be agreed before 2020, they will review their energy policy to ensure that the United Kingdom's competitive position is not adversely affected and energy consumers not penalised by the continuation of existing policies, especially in relation to increased reliance on wind farms to meet electricity demand.

Photo of Lord Marland Lord Marland The Parliamentary Under-Secretary of State for Energy and Climate Change

As my right honourable friend the Chancellor of the Exchequer has announced today, Government have launched a package of measures to support those energy-intensive industries whose international competitiveness is most affected by our energy and climate change policies. This underlines our commitment to ensure that manufacturing is able to remain competitive during the shift to a low carbon economy.

For domestic consumers, our analysis published with the Annual Energy Statement 20111 estimates that in 2020 the average household bill will be 7 per cent or £94 lower than without the Government's energy and climate change policies.

DECC regularly reviews its energy policies to maximise cost effectiveness and ensure value for money. For example, we are currently consulting on the support levels for renewable electricity generation technologies-including onshore and offshore wind-as part of the renewables obligation banding review.

1 Estimated impacts of energy and climate change policies on energy prices and bills: http://www.decc.gov.uk/assets/decc/11/about-us/economics-social-research/3593-estimated-impacts-of-our-policies-on-energy-prices.pdf.

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