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Rising energy bills will be reduced with climate policies, Ed Davey says

March 28, 2013

Rising energy bills will be reduced with climate policies, Ed Davey says

The impact of rising household energy bills will be greatly reduced by climate change policies which could save consumers around £166 by 2020, according to the energy and climate secretary, Ed Davey.

Analysis by the department of Energy and Climate Change (DECC) showed that 85% of the present average £1,250 bill cannot be controlled by the government because it is determined by international gas and electric prices, transmission and metering costs. After energy companies have taken their profits, and VAT has been paid, government policies can only influence around 11% of the bill, says Davey.

In a riposte to some Conservative politicians and media which have claimed that wind power will cost more than £120bn in the next eight years and send household bills soaring, he claimed that energy-saving policies, better gas boilers, tighter building regulations and the coalition’s green deal loan scheme and smart meters could save householders around £166 a year by 2020. According to DECC, that is an 11% cut compared to the government doing nothing.

Read more at The Guardian.

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