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RWE npower claims bills will rise £240 by 2020

RWE npower says bills will rise £240 by 2020 due to green policies, The Guardian reported.

The Guardian has investigated the claim made by RWE npower. The company, one of the “big six” energy companies, has said that the government’s green polices will largely be responsible for bills rising from £1,247 today to £1,487 by 2020.

Npower chief executive Paul Massara said: “Government policy is rightly delivering the transformation we need to address the UK’s poor housing stock and encourage investment required in new infrastructure – but achieving these aspirations comes at a cost, and this is what needs to be clearly communicated to consumers.

“The fact is that if people don’t take action to reduce energy consumption, their bills are going to rise. If we can’t be upfront about that we won’t be able to convince people to make big changes to be more energy efficient.”

RWE npower said support for low-carbon technologies alone would add £82 to the average energy bill by the end of the decade, up from £34 this year and £12 in 2007.

The cost of investing in low-carbon power sources accounts for less than 3% of the average household bill, but this will rise to 5.5% by the end of this decade, it added.

The government has responded, saying that “global gas prices, not green policies” are the driver of current energy bill rises.

But RWE npower’s new report follows on from a testy exchange of letters over energy bills in recent days between Ed Davey, the energy and climate secretary, and the Taxpayers’ Alliance (pdf).

Furthermore, a new report published today by the UK Energy Research Centre says the the British public broadly support the government’s drive towards low-carbon energy supplies, as long as it is done in a “transparent” manner.

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