Electricity market reform could increase billsGovernment must be clear about cost to consumers

13 July 2011

wind turbine

The new proposals suggest that 30% of our electricity will come from renewable sources by 2030.

Climate and energy secretary Chris Huhne has announced radical changes to the electricity market in the UK, aimed at encouraging low carbon generation of electricity.

The White Paper on electricity market reform lays out policies to encourage investment in new, low carbon forms of power.

Electricity cost to increase

However, there are concerns that the cost of the proposals could lead to yet another increase in energy bills.

Richard Lloyd, executive director of Which? said

'We support the emphasis on affordability and attempts to tackle increased costs, but the government must be as clear as possible with consumers about how far prices will rise in comparison to today's energy bills.'

The proposals are expected to cost each household around £160 per year by 2030. However, the Department of Energy and Climate Change (DECC) has said that our electricity bills will go up by £200 per year if we continue to be reliant on fossil fuels.

Security of UK energy supply

DECC are hoping that the proposals will dramatically reduce the UK's reliance on fossil fuels as well as securing our energy supply for the future.

Energy secretary Chris Huhne said that we need to 'guarantee the future security of supply'. At the moment around 7% of our energy comes from renewable sources, but these proposals suggest that 30% of our energy could be renewable by the year 2030.

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