Clean energy target dividing Coalition would not raise household energy bills
IPPR, UK: Adopting an ambitious target to clean up the UK’s energy system would not add costs to household energy bills, according to new analysis of the UK’s energy pathways to 2030 by the think tank IPPR. The calculations show there would be small cost savings but relying on more gas would increase household bills. IPPR analysis shows that moving to a cleaner energy system in the run up to 2030 would not add to cash-strapped consumers’ energy bills. It would in fact result in small savings for the economy of £163m if gas prices rise in line with expectations, or £249m if gas prices are higher than expected. However, relying more on gas up to 2030 by building more gas-fired power stations would cost £312m or £478m if gas prices are higher than expected – between £10-15 per household. IPPR’s analysis shows that not only would energy prices be more expensive, but they would be highly volatile. At the Government’s upper estimate for gas generation in 2030, energy costs could vary by as much as £229 per household. At the lower estimate, energy costs are only likely to vary by around £51 per household. (Source: http://www.ippr.org/press-releases/111/10420/clean-energy-target-dividing-coalition-would-not-raise-household-energy-bills)