15 Dec '11, 12am

Gas, not renewables, is driving up bills, says Climate Committee

Soaring gas prices are contributing far more to increases in household energy bills than policies designed to support renewable energy and the other elements of the green economy, the Committee on Climate Change (CCC) will say today. New analysis from the independent body finds the majority of homes have seen their annual bills rise from £604 in 2004 to £1,060 last year. But almost two thirds of that increase was down to rises in the wholesale gas price, compared to just a seven per cent increase resulting from renewable energy subsidies. The report breaks down the £455 increase in bills, concluding that rising gas prices accounted for £290, transmission and distribution costs accounted for £70, VAT added £20, and £75 was the result of policies to reduce carbon emissions. The cost of low carbon policies equated to £30 a year to support investment in renewable energy and £4...

Full article: http://www.businessgreen.com/bg/news/2132770/gas-renewabl...

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