The average British household could end up paying an extra £8,000 for its gas and electricity if Chancellor George Osborne succeeds in delaying vital action to make Britain greener, the Independent has reported after warnings from Government’s official climate change advisers.
Postponing decisive action to cut carbon emissions by 10 years to 2030, through measures such as a widespread shift to renewable energy sources, will add at least £100bn to Britain’s collective household energy bills between 2030 and 2050, according to the independent Committee on Climate Change (CCC).
The report rejects claims that renewable energy subsidies and other green levies are bad for households because they will accelerate increases in energy bills. The committee concedes that consumers will pay more in the short term to fund the transition to a greener economy, but will be handsomely rewarded in the long term as price increases are curbed.
The report comes ahead of a key review in the spring of Britain’s carbon emission targets for the 2020s that David Cameron personally approved in 2011. The review was secured by Mr Osborne, who is concerned that the agreed emissions reductions might be bad for the economy and would reduce his scope to build dozens of new gas-fired power stations.
But the committee finds that watering down the carbon emissions targets would be far more costly than pressing ahead with the agreed cuts. It also argues that by fiddling with previously agreed energy targets, the Government could undermine the confidence of potential investors in energy projects.
This view is shared by a coalition of 100 parties, including Sainsbury’s, Asda, Ikea, O2, Sky, Nestlé and the consumer goods giant Unilever, which today calls on the Government to stick with its previously agreed plan to substantially reduce carbon emissions.
The CCC report comes at a time when consumer confidence in the so-called “Big Six” energy companies is low, following a series of inflation-busting price hikes that have greatly increased their profits.