Energy bills fall following action to tackle climate change
Action to tackle climate change and improve energy efficiency has resulted in a fall in household energy bills, according to new analysis by the Committee on Climate Change (CCC).
While measures to deliver a cleaner, low-carbon electricity system added around £9 a month (£108 per year) to the typical UK household energy bill in 2016, the CCC, which is an independent body that advises the government on climate change, says this was offset by a cut of over £20 per month (£240 a year).
This was due to reduced energy demand mainly from households using more efficient lights and appliances, such as white goods.
Low carbon-policies made up around 9% of an annual dual fuel energy bill of £1,160 in 2016.
Since 2008, when the Climate Change Act was passed, the average annual dual fuel energy bill has fallen by £115 in real terms.
The report warns that the gradual shift towards low-carbon electricity could add a further £85-£120 per year to a typical bill by 2030 if further policies to meet UK climate objectives are put in place.
However, it adds that further improvements in energy efficiency have the potential to deliver savings of around £150 a year if prices remain at their current levels. If wholesale energy prices and household bills do rise, the report says energy efficiency savings will be even greater than £150 a year.