Go green and pay £300 extra for household fuel bills

Green energy policies could add up to £300 extra to household fuel bills annually, according to Downing Street advisers.

They called claims made by Energy Secretary Chris Huhne's Department of Energy and Climate Change (DECC), that a 30 percent rise in fuel bills by 2020 could be offset by lower consumption, unconvincing.

The DECC claimed that the impact of green policies on bills 'would be lower due to the effect of other policies, notably energy efficiency measures, in lowering electricity consumption.'

But Ben Moxham, David Cameron's senior policy adviser on energy and the environment, and a former employee of BP (don't snigger) was not buying it. In a note, Moxham said: 'DECC's mid-case gas price scenario sees policies adding 30% to consumer energy bills by 2020 compared to a world without policies … we find the scale of household energy consumption savings calculated by DECC to be unconvincing.'

He added: 'Their analysis may be based on the assumption that many energy efficiency measures will be taken up without subsidy, whereas we believe a large number of measures will need to be subsidised, given the hassle factor and other barriers to consumer uptake.'

A DECC spokesperson commented: 'Reforms will not add £300 to bills. Our policies will both add and subtract from future bills because we need to build new reliable energy sources to keep the lights on, but we'll also be helping people to cut their bills through greater energy efficiency. Our reforms to the electricity market will deliver the best deal for Britain and for consumers: getting us off the hook of relying on imported oil and gas by creating a greener, cleaner and ultimately cheaper mix of electricity sources right here in the UK.'

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