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Electricity bills to rise, says report

A consultancy report has claimed that household energy bills may rise by a quarter to pay for renewable energy investments.

Furthermore, the Renewable Energy Forum (REF) has hit out at DECC, accusing them of misleading the public.

REF claims its analysis of the government’s own figures shows that two-thirds of households, about 17 million in all, will be worse off – even if energy efficiency targets are met in full.

In a 54-page report published on Monday, REF will conclude: “DECC has made unrealistic assumptions about the use of energy efficiency measures to offset the costs to households, but even on those optimistic assumptions 65 per cent of households will still be net losers.”

The DECC has insisted that energy bills will begin to fall from next year and will be reduced by seven per cent – or £94 – by 2020 because of new energy efficiency policies.

These include the Green Deal, which will provide loans to fund loft and wall insulation; the roll-out of ‘smart’ meters to help control and monitor energy consumption; and the improvement in the energy efficiency of kettles and other appliances.