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Energy: Billing

Department for Business, Energy and Industrial Strategy written question – answered on 14th February 2018.

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Photo of Deidre Brock Deidre Brock Shadow SNP Spokesperson (Devolved Government Relations), Shadow SNP Spokesperson (Fair Work and Employment), Shadow SNP Spokesperson (Northern Ireland)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department's most recent estimate is of the proportion of an average domestic energy bill which results from the cost of adherence to a Government policy; and if his Department will publish figures on such costs in each of the past ten years.

Photo of Claire Perry Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

BEIS published analysis of the impact of energy and climate change policies on average household energy bills in 2012 and 2016 as part of the Clean Growth Strategy on 12 October 2017. This information is presented in table 1.

In summary, the cost of policies (including carbon costs) delivering cleaner energy, support for vulnerable households and investing in upgrading our buildings accounted for around 12% of an average household dual fuel bill in 2016. However, these costs were on average estimated to be more than offset by savings from improvements to the energy efficiency of people’s homes, delivering a net saving of £14 on average in 2016.

Table 1: Average impact of energy and climate change policies on household dual fuel bills

Real 2016 £

Policy costs (as share of bill)

Policy energy efficiency savings

Net impact of policies

2012

£126 (10%)

-£128

-£2

2016

£147 (12%)

-£161

-£14

Source: Data from figure 11 of the Clean Growth Strategy https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/651916/BEIS_The_Clean_Growth_online_12.10.17.pdf.

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