Green policies set to add £300 to energy bills

5 September 2011

Household energy bills will rise by over £300 a year as a result of the coalition's green policies.

Ben Moxham, the Prime Minister's senior energy adviser, has warned that the government's plans to increase the use of nuclear power, wind turbines and other green measures will add 30% to the average family's annual energy bill of £1,069 by 2020.

In a private note, seen by The Daily Telegraph, entitled ‘Impact of our energy and climate policies on consumer energy bills', Moxham warns that "over time it is clear that the impact of our policies on consumer bills will become significantly greater."

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Serious doubts

Moxham also raises serious doubts over claims by Chris Huhne, the energy secretary, that increases in gas and oil prices will be offset by energy efficiency measures that will see consumers using less power.

Moxham describes this claim as "unconvincing" saying that the scale of efficiencies that Huhne and the Department of Energy and Climate Change (DECC) have predicted had been based on the assumption that "many energy efficiency measures will be taken up without subsidy".

This is highly unlikely states the note as "we believe a large number of measures will need to be subsidised, given the hassle factor and other barriers to consumer uptake."

Moxham suggests there are four policies that will raise consumer bills including the plan to insist more energy comes from renewable sources and a plan to guarantee power companies a fixed price for electricity if they use low carbon methods to generate.

The latest news comes at a bad time for consumers as five of the "big six" energy firms have announced price rises in the past few weeks. The most recent was Npower that has stated that gas bills will rise by 15.7% and electricity by 7.2% from 1 October.

As winter approaches we are all facing much higher energy bills regardless of government policy.

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