Scrapping quangos would cut energy bills
Household bills could be cut if the Government slashed red tape and scrapped some of the quangos involved in the energy industry, a think tank has suggested.
A Policy Exchange study identified dozens of different energy bodies, costing an estimated £600 million a year, covering different aspects of the industry.
The Department for Energy and Climate Change (DECC) described the report as "interesting" and said it would "consider proposals" that could help keep bills down.
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The report, by economist Richard Howard, found more than 30 organisations responsible for the delivery of energy policy, the management of industry codes of practice and the operation of the energy system.
An energy company would have to comply with about 10,000 pages of code regulations, governed by a mass of different organisations.
"Administrative responsibilities split between so many different bodies result in additional costs, which are paid for from general taxation and charges on consumer bills," the report said.
The study suggested reorganising the various administrative organisations into three: an energy delivery body, an industry codes bodies and an independent systems operator.
Mr Howard said: "There are now over 30 organisations actively involved in the administration of the energy industry. They often perform similar functions, pushing up costs and creating complexity for energy companies.
"This unnecessary red tape risks deterring new entrants and stifling growth and innovation. It is time for the Government to consider consolidating a large number of these bodies."
Officials stressed it would "premature" to comment on Mr Howard's specific recommendations but they were looking at ways to reduce costs.
A DECC spokesman said: "Our priority is providing secure, clean and affordable energy for hard-working families and businesses.
"This is an interesting report and touches on a number of important policy areas. We will consider proposals that could help reduce the costs of the energy system and keep bills low."
