Policies 'reducing fuel bill rises'


Government policies such as helping insulate homes and promoting the installation of more energy efficient boilers are helping reduce the rise in household gas and electricity bills, according to a report

Savings generated from energy efficiency policies are already having an impact and will increase over the next decade, said a report from the Department for Energy and Climate Change (DECC).

Household dual fuel bills are estimated to be on average 5%, or £64 lower now than they would be without these policies, said the report.

By 2020, average household energy bills will have risen by 6% in real terms but will be 11%, or £166 lower than they would been without government policies, the report said.

Nearly half of the average household dual fuel energy bill, or around 47%, is made up of fossil fuel prices, or £598, with the second largest cost attributed to network costs or transport and distribution of energy, at 20% or £257.

Government policies on energy and climate change accounted for 9%, or £112 of this bill - with £30 of this spent on renewable energy policies, including £9 on on-shore and £9 on off-shore wind.

Over half of the energy and climate change policy costs in household bills are are spent on measures to target the fuel poor and energy efficiency.

The report showed 85% of the rise in household bills between 2010 and 2012 was from wholesale energy costs and network costs and 15%, as a result of Government policies.

Household energy consumption has been on a downward trend since 2005 partly as a result of energy efficiency measures already in place, according to the report.

By 2020 around 12 million boilers will have been replaced with more energy efficient boilers, the report said.

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