Welcoming the report by the Committee on Climate Change regarding energy prices, Rebecca Williams, Energy Specialist at WWF said:
“This report shows that energy companies are wrong to blame the increase in energy bills solely on UK Government policies. It is clear that the main driver here is rising fossil fuel costs.
"Innovation is driving down the costs of producing low carbon energy and UK Government policies to improve energy efficiency are also bringing down bills. These UK Government policies are a small price worth paying to bring cleaner air and new jobs to the UK. We look forward to the expected Emissions Reduction Plan to further set out how the UK will meet its climate change targets.”
- Total bills have risen around 28% in real terms since 2004.
- Ofgem figures shows that 13% of electricity bills and just 2% of gas bills are due to social and environmental costs. The Ofgem supplier index also shows that by far the largest changes over the past 12 months have been in the cost of buying gas and electricity from wholesale market.
- Bills rose rapidly from 2004 to 2008, since when they have fluctuated around the current level. This has been against a backdrop of generally increasing prices and large reductions in energy consumption, made possible by energy efficiency improvements.
- Price pressures have largely been driven by higher wholesale energy prices, but the costs of low-carbon policies have also increased by £90 since 2004.