Responding to widespread claims that power bills will rise significantly as a result of new government financial support for renewable energy, Greenpeace executive director John Sauven said:
“Despite what the headlines say, new investment in clean energy is good news for consumers. Electricity bills are going up whatever happens because Britain needs to replace its ageing energy infrastructure. But investing in green energy is no more expensive in the long run than throwing the cash at mostly imported gas. With renewables we can pay now for the investment in new technology and save money later, but with gas we pay almost the same now but face rising costs well into the future. And when you throw in the huge economic benefits from new jobs and a potential new export industry in goods and services, renewables are the smart option for bills, the economy and the environment.”
- The facts:
- The Department of Energy and Climate Change says the cost to bill-payers of renewables investment will be ‘under £100’ per year in 2020. Meanwhile the government’s own independent advisors at the Committee on Climate Change have concluded that pursuing clean energy is cheaper for bill payers than a new dash for gas – even if the price of gas falls.
- The cost to bill-payers of investing in renewables also needs to be offset against government policies to increase energy efficiency, which are projected to knock £94 OFF household energy bills by 2020, meaning taken as a whole green measures will REDUCE bills (according to official DECC figures).
- These projected increases need to be set against the inevitable rise in bills that would result from a continued reliance on gas. Between 2004 and 2010 the typical duel fuel energy bill increased by £455. The majority of this increase, £290, came from increases in gas prices, a further £70 from upgrading ‘the wires’ and £20 from the VAT increase. Only about £30 was added to support low-carbon generation. According to CBI chief John Cridland: “Too much gas would bust our carbon budgets. But even if you forgot about carbon momentarily, look at European gas price projections. They all disagree on the number, but they all agree on the direction: up!”
- The International Energy Agency projects that even under a ‘golden’ scenario for gas - including shale gas - EU prices will rise by a further 40% by 2020. That will go on bills.
- The UK currently spends £7bn on imports of gas – a figure destined to increase as North Sea reserves are depleted. That figure of £7bn is the same amount of money that’s now been earmarked for domestic renewables investment. Instead of that money flowing out of the country, a thriving renewables sector would be a valuable new export industry.
- The Treasury’s Carbon Floor Price (not supported by green NGOs) will put up household bills by £11 in 2020. This tax will raise £3.22bn in tax revenues for Treasury by 2015-16, but the money is not ring-fenced for investment in clean energy projects. http://www.huffingtonpost.co.uk/ben-caldecott/carbon-price-floor-what-w_...
http://hmccc.s3.amazonaws.com/2012%20Progress/CCC_Progress%20Rep%202012_...
http://www.bbc.co.uk/news/science-environment-18641136
http://www.businessgreen.com/bg/opinion/2208276/john-cridland-what-role-...
http://www.worldenergyoutlook.org/media/weowebsite/2012/goldenrules/WEO2...
ENDS
Greenpeace – 0207 865 8255
