Government unveils plan to cut fuel bills
The Coalition’s ‘Programme for Government’ set out commitments to increase households’ control over their energy costs; as well as investigating measures to help with fuel costs in remote rural areas, improve home energy efficiency and invest in low carbon and marine energy. In response, the Energy and Climate Change Secretary, Chris Huhne, has announced big changes in the way Britain organises its electricity production.
Citing how over the next 10 years up to 25% of existing power stations will close and £110 billion of investment is needed to replace them and upgrade the national grid, the Minister has unveiled a five-point plan: (1) a new carbon price floor; (2) a system to make low carbon energy more attractive; (3) the introduction of an Emissions Performance Standard; (4) a contracting framework for changing the way we secure our back-up electricity; and (5) institutional arrangements to deliver this package of reforms and ensure continuity in investment.
In practice, it is estimated that the programme will add £160 per year to the average energy bill by 2030, compared to £200 without the changes. Amid the ‘renewables roadmap’, apart from increased bills, the proposals contain little mention of consumers.
On the one hand, sustained rises in heating costs have led to many people in rural communities struggling to keep warm in winter and having to make the decision whether to heat or eat. On the other hand, perhaps these plans present opportunities for more rural communities to generate their own energy from renewable sources.