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Gas, not renewable energy, main reason for UK energy price hike

Research by the UK Committee on Climate Change shows that rising gas prices are the major cause of rising household energy bills accounting for 64% of the increase, whereas renewable energy only contributed 6.5% to the price hike.

By Kari Williamson

Average households using both gas and electricity have seen a price increase from £605 in 2004 to £1060 in 2010, an increase of 75%. Only £30 – or 6.5% – of this increase is related to support for low-carbon energy, compared to £290 for increasing costs of gas and supplier costs.
Dr Gordon Edge, RenewableUK’s Director of Policy, says: “This important analysis by the Committee on Climate Change reaffirms the impact of over-reliance on fossil fuels on our energy bills, and demonstrates the need to move towards a power supply less dependent on a finite resource.”
The Committee finds that investing in low-carbon generation, which includes renewable energy and nuclear power, will raise bills by £100 between now and 2020 – far less than claims made by critics of renewable energy.

“No-one is claiming that supporting renewable energy up to the point when it becomes competitive in the market place will be free – but the cost of not doing so would be far higher. Over the last decade, rising fossil fuel prices have pushed up energy bills by more than double the amount that low-carbon investment is expected to do so in this one. And that extra £100 brings us more stable prices, a UK industry, and reduced dependence on imports, making investment in renewable energy excellent value for money.” Dr Edge concludes.

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