The UK government’s July energy white paper seeks to set out the criteria needed to meet the country’s ambitious green house gas reduction targets. The additional investment in green technology has been hailed as a revolution, but even the considerable economic cost is outweighed by the social cost, with more households facing fuel poverty as consumers’ energy bills will fund the proposed schemes.
The UK government’s Renewable Energy Strategy, which aims to increase the level of renewable generation in the country from 5.5% to 30% by 2020, has an associated cost of GBP4 billion each year. This amounts to between GBP57 billion and GBP70 billion over the lifetime of the scheme, with associated benefits from this outlay expected to be at most GBP5 billion over the same period.
The burden of recovering the remaining projected GBP65 billion cost will fall on domestic consumers and small businesses, with the reported additional cost being GBP249 per household, an increase on the average household energy bill of around 20%.
There are just under 25 million households in the UK, and four million of them are reportedly already in fuel poverty, which is classified as when a household spends in excess of 10% of disposable income on heating the home to an adequate level. A further increase in energy bills will undoubtedly see more households forced into fuel poverty. Even with schemes in place to mitigate the growth in the fuel bills of the fuel poor through energy efficiency savings, higher bills are inevitable and the social consequences are significant, with help not always available for those who need it most.
While the economic penalties are clear to see, the benefits of the renewable strategy are less tangible. The term green industrial revolution is widely touted but this will be a significant investment with little in the way of increased output. Fundamentally, regardless of the source, the power obtained from a plug socket will be the same. There will be no step-change increase in industrial output to help fund the investments, as was the case during the industrial revolution.
That is not to say that the government’s ambition to reduce greenhouse gas emissions is unwise or unnecessary. However, the best of intentions do not resolve the fact that households and small businesses that are already struggling in difficult economic times will be further burdened by the need to pay for the proposed schemes. The ability of renewable sources to provide unsubsidized energy at a competitive price is questionable and alternatives are available. Efficiency improvements in combined cycle gas turbines would certainly offer a lower level of emissions than existing generations, at a fraction of the cost of a heavily renewable portfolio.
Source - Istockanalyst
Showing posts with label energy bills. Show all posts
Showing posts with label energy bills. Show all posts
Thursday, 20 August 2009
Friday, 17 July 2009
Ready to pay £200 a year extra for green energy?
The stark admission by Ed Miliband, the UK energy secretary, that UK energy bills will rise by an average of £200 a year as the UK looks to bring in more renewable energy is sure to catch the eye of many. Claiming that “no matter which route we go down” Mr Miliband has warned UK consumers and businesses that energy costs are certain to rise in the short to medium term.
The UK government has already signed up to a carbon reduction programme which will see an 80% reduction in carbon emissions between 1990 and 2050 with up to £100 billion spent on renewable energy by 2020. At a time when many in the UK are struggling to make ends meet the government is set to introduce a 20% tariff on the average energy bill to cover the £100 billion investment programme.
It seems that the UK government has acted on behalf of UK consumers in signing up to a program which will increase energy costs by 20% a year for the foreseeable future. History has shown us that even in periods of short-term fundraising it is highly unlikely that energy bills will fall after the initial fundraising period is over. So the UK consumer and UK businesses need to get themselves ready for a significant increase in energy bills, aside from any future increase in the price of oil or other commodities.
Source - New Energy Focus
The UK government has already signed up to a carbon reduction programme which will see an 80% reduction in carbon emissions between 1990 and 2050 with up to £100 billion spent on renewable energy by 2020. At a time when many in the UK are struggling to make ends meet the government is set to introduce a 20% tariff on the average energy bill to cover the £100 billion investment programme.
It seems that the UK government has acted on behalf of UK consumers in signing up to a program which will increase energy costs by 20% a year for the foreseeable future. History has shown us that even in periods of short-term fundraising it is highly unlikely that energy bills will fall after the initial fundraising period is over. So the UK consumer and UK businesses need to get themselves ready for a significant increase in energy bills, aside from any future increase in the price of oil or other commodities.
Source - New Energy Focus
Monday, 12 January 2009
Gas and electricity bills are rising four times faster in the UK
Britains energy prices have increased by 16.7 per cent over the past year.
The increase compares to the European average of 3.8 per cent, with 1.5 per cent in Germany, 1.3 in Denmark and 5.3 in Sweden. Continental energy companies have been accused of “picking the pocket” of British consumers as four of the six biggest gas and electricity firms in Britain are European-owned.
Among developed nations, only Australia (20 per cent) and Turkey (28.7 per cent) had faster price rises, the OECD figures showed. The figures were released after the Conservatives called for energy companies to be investigated for refusing to pass on price cuts to consumers.
The wholesale cost of energy has dropped sharply since the summer, but suppliers have failed to reduce what they charge customers, leading to accusations of profiteering.
British households saw their energy bills rise by £381 to £1,293 on average last year, according to price comparison website uSwitch.com.
It brings further misery to UK households which have seen their budgets squeezed by higher petrol and food costs compared to a year ago.
Will Marples, energy expert at uSwitch.com, said: “On top of this, consumers are dealing with the ongoing economic crisis while waiting for news of whether energy price cuts are going to be delivered this year or not. Whereas previously they may not have worried about how UK energy bills compared with those in Europe, or factors affecting prices, these issues are now firmly on the agenda as British consumers want to know that they are getting a fair deal.”
Energy experts suggest that British consumers suffer more than their European neighbours because of the country’s reliance on the gas market, and its lack of storage.
Britain has just 13 days’ gas storage, compared with 99 in Germany and 122 in France, making it less easy to stockpile gas when it is cheap.
Experts also warned that average prices could rise as a result of Russia cutting its gas supplies in a dispute with Ukraine.
Among the most vulnerable to price increases are pensioners, according to charities.
Paul Bates, a spokesman for Help the Aged suggested that more than 20,000 people die from preventable illnesses as a result of the cold.
He said: “Too many pensioners are facing the stark choice between heating and eating, putting their health at risk
“No older person should ever have to worry about whether they can afford to heat their homes properly in the winter.”
The Energy Retails Association said British customers have enjoyed historically low prices compared to Europe due to our reserves of natural gas in the North Sea.
She said: “The prices we now pay for our energy are more vulnerable to fluctuations.”
Source - The Telegraph
The increase compares to the European average of 3.8 per cent, with 1.5 per cent in Germany, 1.3 in Denmark and 5.3 in Sweden. Continental energy companies have been accused of “picking the pocket” of British consumers as four of the six biggest gas and electricity firms in Britain are European-owned.
Among developed nations, only Australia (20 per cent) and Turkey (28.7 per cent) had faster price rises, the OECD figures showed. The figures were released after the Conservatives called for energy companies to be investigated for refusing to pass on price cuts to consumers.
The wholesale cost of energy has dropped sharply since the summer, but suppliers have failed to reduce what they charge customers, leading to accusations of profiteering.
British households saw their energy bills rise by £381 to £1,293 on average last year, according to price comparison website uSwitch.com.
It brings further misery to UK households which have seen their budgets squeezed by higher petrol and food costs compared to a year ago.
Will Marples, energy expert at uSwitch.com, said: “On top of this, consumers are dealing with the ongoing economic crisis while waiting for news of whether energy price cuts are going to be delivered this year or not. Whereas previously they may not have worried about how UK energy bills compared with those in Europe, or factors affecting prices, these issues are now firmly on the agenda as British consumers want to know that they are getting a fair deal.”
Energy experts suggest that British consumers suffer more than their European neighbours because of the country’s reliance on the gas market, and its lack of storage.
Britain has just 13 days’ gas storage, compared with 99 in Germany and 122 in France, making it less easy to stockpile gas when it is cheap.
Experts also warned that average prices could rise as a result of Russia cutting its gas supplies in a dispute with Ukraine.
Among the most vulnerable to price increases are pensioners, according to charities.
Paul Bates, a spokesman for Help the Aged suggested that more than 20,000 people die from preventable illnesses as a result of the cold.
He said: “Too many pensioners are facing the stark choice between heating and eating, putting their health at risk
“No older person should ever have to worry about whether they can afford to heat their homes properly in the winter.”
The Energy Retails Association said British customers have enjoyed historically low prices compared to Europe due to our reserves of natural gas in the North Sea.
She said: “The prices we now pay for our energy are more vulnerable to fluctuations.”
Source - The Telegraph
Wednesday, 16 July 2008
Weathering the energy storm with solar panels
A couple are hoping to weather the rising costs of fuel bills and make their home a more attractive purchase for the future by installing solar panels on its roof.
Although the panels will not provide electricity or domestic heating, they will provide a huge saving on the couple’s hot water bill.
Heat my Home, which is the company installing the panels later this month, says the panels can provide 70 per cent of a homeowner’s hot water needs and save up to 30 per cent on annual energy bills.
This could be money well saved as energy bills are rising, and some reports say they will increase by as much as 40 per cent this winter.
Mr Hayne, 72, a retired council highways inspector, said: “I was listening to the TV one night and it said houses in a couple of years are going to be built with solar panels, so I thought we might as well go ahead.
“We are hoping when we come to sell the house it will go easier and with the price rises on fuel, we may make a saving as well.”
The installation of the panels will also involve a new water tank being fitted, which will be large enough to cater for a family.
Mr Hayne said: “The solar runs all right even without sun, but if you get a cold spell then we might have to put on the immersion heater, so we will have that as a back-up.
“We decided to go ahead with it before the latest price rise, whether we make the back on the house by doing this.
“The main thing is our children will have no problem selling the house on after we are gone.”
The solar panels will only provide hot water, because the solar panel collection area needed to provide heating for a house would take up a far larger space than available on an average British home and would not be cost effective.
Having the panels can increase the value of a home, especially now Home Information Packs (HIPs) highlight energy efficiency.
Last week, it was announced household energy bills could rise by 20 per cent to pay for the cost of meeting the European Union’s 2020 emissions target.
A report called Costing the Earth stated this, coupled with the soaring cost of oil also contributing to rising energy bills, could push a lot of households in to fuel poverty. Wind power is currently the most popular form of renewable energy used in Britain.
Source - Getwokingham
Although the panels will not provide electricity or domestic heating, they will provide a huge saving on the couple’s hot water bill.
Heat my Home, which is the company installing the panels later this month, says the panels can provide 70 per cent of a homeowner’s hot water needs and save up to 30 per cent on annual energy bills.
This could be money well saved as energy bills are rising, and some reports say they will increase by as much as 40 per cent this winter.
Mr Hayne, 72, a retired council highways inspector, said: “I was listening to the TV one night and it said houses in a couple of years are going to be built with solar panels, so I thought we might as well go ahead.
“We are hoping when we come to sell the house it will go easier and with the price rises on fuel, we may make a saving as well.”
The installation of the panels will also involve a new water tank being fitted, which will be large enough to cater for a family.
Mr Hayne said: “The solar runs all right even without sun, but if you get a cold spell then we might have to put on the immersion heater, so we will have that as a back-up.
“We decided to go ahead with it before the latest price rise, whether we make the back on the house by doing this.
“The main thing is our children will have no problem selling the house on after we are gone.”
The solar panels will only provide hot water, because the solar panel collection area needed to provide heating for a house would take up a far larger space than available on an average British home and would not be cost effective.
Having the panels can increase the value of a home, especially now Home Information Packs (HIPs) highlight energy efficiency.
Last week, it was announced household energy bills could rise by 20 per cent to pay for the cost of meeting the European Union’s 2020 emissions target.
A report called Costing the Earth stated this, coupled with the soaring cost of oil also contributing to rising energy bills, could push a lot of households in to fuel poverty. Wind power is currently the most popular form of renewable energy used in Britain.
Source - Getwokingham
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