Green taxes add 15% to your bills: At last, an admission of how much families are paying for energy

  • £200 could be added to the average energy bill by 2020
  • Government claim bills won’t go up if people cut consumption
  • Gas could hit £997 and electricity £812 by 2020

By
Daniel Martin, Whitehall Correspondent

Last updated at 10:48 PM on 17th February 2012

Electricity prices are 15 per cent more expensive than they should be because of green policies, Whitehall officials have admitted.

Energy costs for hard-pressed consumers have been pushed up by extra charges imposed to help the Government meet pledges to cut carbon emissions.

Projections in Whitehall show that by 2020, the burden for electricity will be an astonishing 27 per cent more than it would otherwise have been. The figure for gas will be 7 per cent higher.

How costs are soaring

The added expense could add up to £200 to the average energy bill by 2020 – unless householders dramatically cut the amount of power they use.

The green taxes will boost energy made from renewable sources by building vast wind farms, nuclear power stations, more solar panels and a new pylon network.

The Coalition claims the taxes will not necessarily push up bills as consumers will cut heating costs thanks to better insulation. But consumer groups insist it is very unlikely that people will be able to cut their energy use enough to keep bills stable.

The paper from the Department for
Energy and Climate Change also raises the threat of a ‘high price’
scenario under which wholesale energy prices soar by more than expected.

They
have calculated that in eight years, the combination of green taxes and
wholesale price rises could push electricity prices up by as much as 36
per cent from 2010 levels.

Gas costs could rocket by 44 per cent.

If
people do not slash their energy use, this ‘high-price scenario’ would
see the average gas bill hit £997 and that for electricity soar to £812.

Green tax: Charges are used to fund renewable energy sources including wind turbines

Green tax: Charges are used to fund renewable energy sources including wind turbines

This leaves consumers needing to find more than £500 more than last year when average household bills were around £600 for electricity and £660 for gas.

Emma Boon, for the TaxPayers’ Alliance, said last night: ‘Plans for draconian climate regulations and expensive renewable energy subsidies are going to drive gigantic increases in energy bills in the next decade.

‘Politicians have tried to play down the cost of these green policies but independent estimates have made it clear that there is going to be an affordability crisis.

‘The Government needs to reform climate policy to make it more affordable and not ignore the plight of families facing huge pressure on living standards.’

Clare Francis, site editor at MoneySupermarket.com, said: ‘There is no doubt the trend for energy prices is up.

‘The only way people can make savings is to switch to a more competitive pricing plan, which will save them around £200 a year, and reduce energy use and make their homes more energy efficient.

‘Those who do nothing will just see their energy bills climb year after year. Now is the time to fight back as there are simple things people can do to offset rising prices.’

The DECC paper compares the price of a kilowatt hour of electricity in 2011 with what it would have been without climate change policies.

Without the green measures, it was 13p but with them in place, it was 14.9p per kWhr, 15 per cent higher.

Projections show that by 2020, the differential rises to 27 per cent: 14.4p without green policies and 18.3p with.

If people continue to use the current
average of 4 megawatt hours per year, this means green policies will
add £156 to the typical electricity bill.

The paper also includes a nightmare ‘high-price’ scenario, where wholesale prices are higher than expected.

This could push electricity prices to 20.3p per kWhr in 2020.

Soaring: Electricity prices could hit £997 per year and electricity could rise to £812 by 2020

Soaring: Electricity prices could hit £997 per year and electricity could rise to £812 by 2020

The situation is similar for gas, according to DECC’s document which was published late last year.

In 2011, gas prices were 4.1p per kWhr, 5 per cent more than they would have been without the green policies.

By 2020, the differential rises to 7 per cent: 4.4p without green policies and 4.7p with.

If people continue to use the current 16.9 MWhr average, this green differential will increase gas bills by £50 a year.

The projection says gas prices will rise by 15 per cent from 2011 to 2020. But under the ‘high wholesale price’ scenario, gas could cost 5.9p per kWhr in 2020, up 44 per cent.

Other projections on the DECC website show that premium unleaded petrol could breach the 140p per litre barrier as early as 2016.

Under the ‘high-price’ scenario, petrol will cost 140.9p a litre in 2016 and 160p by 2028.

A department spokesman said retail energy prices would increase until 2030 ‘driven largely by rising wholesale and network costs and, to a lesser extent, energy and climate change policies’.

He added: ‘Our policies will help us become less vulnerable to rises in fossil fuel prices and help people to use energy more efficiently in their homes and businesses.

‘If we don’t invest now to reduce our energy use and our dependence on fossil fuels in the long term, if we have to rely on ever-more expensive imports and leave ourselves at the mercy of international oil and gas prices, the impact on bills will be worse.’

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

Everybody, except the suckers that voted for the Liblabcon Party of Fools, has known that man made global warming is the second biggest con ever, the first being EUSSR membership. WHY DO YOU KEEP VOTING FOR PRO GLOBAL WARMING PARTIES? WHY?

The government talk about our use of fuel as if we just waste it for fun, I have all low energy lights only have heating on when really cold and yes I do wear warm clothes in the home, I have reached rock bottom as to what I can save with out being like Ebenezer Scrooge, I am entitled to decent life style surely without living in a cave on some remote Island.
Renew the power station we have now so we can reuse what we have where it is and save building lots of stupid wind farms and hideous pylons that’s being green.

‘Green taxes add 15% to your energy bills’ That’s the price of idealism and slavishly following trendy EU theories for you. Britain only contributes to 12% of the world’s carbon footprint, and China, India, the US etc don’t pay any green taxes. Bravo idiot pioneering Britons!

Every year our summers get warmer and warmer, our winters get colder….. – Harry Hedge, Montrose —————- so what you’re saying is that as long as they average out at the current value there is no danger of climate catastrophe ?

See what happens when you rely on the media instead of reading the science – you end misinformed.
– Nigel, Newport, 18/2/2012 10:47 ————- what do you suggest the people you berate rely on instead ? The University of East Anglia – who won’t even publish their source data ?
Now I shall use the argument used by the less than liberal “liberal elite” – If they have nothing to hide ….


Every year our summers get warmer and warmer, our winters get colder…..
– Harry Hedge, Montrose

Utter rubbish. Even the most blinkered and brainwashed of idiots don’t claim that. Or so I thought.

Global Warming the Biggest Con this century.All made up of course by a American.Al Gore.Private Enterprise at it’s best.
– Jim Lamb, Queensland Australia,
============= I wonder if you have read: The Artifical Production of Carbon Dioxide And Its Influence on Temperature, by G.S Callendar. It is a scientific paper that describes the effect man-made CO2 has, and the resulting rise in temperatures that could be expected as a result. It was published in 1938. Al Gore was born in 1948.

PLEASE ,tell me what i get out of those daft windmills placed on the countryside around me and also what the heck is a blooming green tax ?

It’s that crazy EUssr again, the Great Global Warming Hoax and a bunch of Muppet Puppets in Parliament who are pretending to represent us. It won’t get any better either until people stop voting for the various factions of the big Cartel of Three Party. Britain may well be a One Party State in all but name but voters still do have a choice. They should start voting for a genuinely independent smaller party before that choice is taken away from us, like the EU has already done to Greece.

This shindig of artificially raising the price of energy was based on the now discredited AGW to pay for the UN’s sustainability programme. But governments, in the manner of outlaws, changed the scoundrels name to Climate Change. So whichever way the Climate behaves, we pay. If such a scheme had been operated by a casino, it would be closed down, and the operators facing prison time.
Quote: The green taxes will boost energy made from renewable sources by building vast wind farms, nuclear power stations, more solar panels and a new pylon network.
It may just have been acceptable if the tax revenue had been put to good use. But to put the revenue in the money making scam of wind turbines, which apart from the fact that they are less then 5% efficient, do not provide energy when required, destabilise the grid, and are an eyesore. When the penny drops and subsidies run out, as surely they must, we will be left with tens of thousands of derelict monstrosities.

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