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Natural Gas: Prices

Energy and Climate Change written question – answered on 14th December 2011.

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Photo of Laura Sandys Laura Sandys Conservative, South Thanet

To ask the Secretary of State for Energy and Climate Change what estimate he has made of the effect on the average household gas bill by 2020 of his decision to switch the source of funding for the Renewable Heat Incentive from an additional levy on consumer bills to general taxation.

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

After the February 2010 consultation on the RHI, the decision was taken to fund the RHI through general taxation rather than an additional levy. At the time of this decision, the scheme was expected to have led to a peak increase in the average household gas bill of £104 per year in 2020 (ramping up from a very small impact in the first year of the scheme).

Since the decision to fund through general taxation, the RHI design has undergone a number of changes. However, no subsequent further assessment of the potential impact on household bills has been undertaken, as the decision to fund through general taxation had been made.

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