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Forget Climate Targets to Achieve Cheaper Energy Bills

By Katie Anderson on October 19, 2011

Government ministers have been warned that discarding climate targets is the only way to stop energy bills rising.

Business groups are claiming that it’s ministers’ obsession with green taxes that’s largely to blame for rising energy bills, and they have called on the Government to give priority to cutting fuel prices, rather than meeting targets to reduce carbon emissions.

But Monday’s energy summit, which saw the Prime Minister meet with heads of the “Big Six” energy firms, did little when it came to offered hope or help for families and businesses struggling to meet the demands of rising energy prices.

Given that the “Big Six” have seen their energy tariffs rise by at least 15% in the last few weeks, resulting in an average dual fuel bill climbing to £1,345 a year – a rise of around £175 – which has been inflated by £100 to meet green taxes and associated charges. The Government will use these charges to fund the move to  solar, wind, wave and nuclear power, to the tune of £200 billion.

Weighing in to the ongoing contentious debate, Simon Walker – the director general of the Institute of Directors – believes it is ‘simply not credible’ for the Government to ask energy firms to curb bills.

“Current policies risk locking us into cleaner and more expensive energy, when the goal should be cleaner and cheaper energy,” he said, warning that encouraging a switch to renewable energy is what’s causing a hike in energy bills.

“What may have been tolerable in an age of affluence is far less realistic today,” he added.

Ann Robinson, of price comparison website uSwitch is also urging the Government to think again about the impact the cost of green policies will have on households, and how much will be passed on to energy bills.