Household energy bills to increase 54% by 2020 in UK: BNEF

by James Martin II on December 18, 2012

It’s no secret that electricity prices have been rising in the UK. In the last few months of 2012, all of the UK’s major 6 electricity retailers–E.ON the last among them–have announced impending or already active increases in their rates. The increases are not set to stop any time soon: investment analysts Bloomberg New Energy Finance (BNEF) have predicted a further 54% rise in UK electricity bills by the year 2020–driven mainly by the country’s investment in clean energy to meet its 2020 renewables target, and the rising wholesale price of energy.

According to BNEF, a £454 power bill will rise to nearly £700 for the same usage on the current trajectories, due mainly to the government’s support for investment in clean and low-carbon energy technologies such as wind power and solar photovoltaics (PV) systems. Investment in renewables is seen as necessary to improve the UK’s energy security by producing more power domestically, as well as to combat climate change and other forms of pollution.

This national undertaking is huge but deemed as a necessary step forward, and the UK is not alone in the transition, which is happening globally and is widely seen as a way of safeguarding against future energy price volatility. Scotland, for example, is aiming for 100% of its power to come from renewables by 2020, and although power prices will be higher in the medium-term, they are expected to be lower than they would have been in a business as usual scenario–one without such a high concentration of renewables. The reason for this is that, although the generation technology itself may be imported, renewable energy is generally generated and consumed domestically and ‘for free’, without any need to purchase fuels from abroad. The same is also likely to be the case for the rest of the UK as well.

“These electricity price increases will reflect the fact that the UK is transforming its mix of generation, pushing renewables close to 30% by 2020, largely at the expense of coal, and with a greater dependence on rising gas prices. The only way households and businesses can mitigate the impact of higher electricity bills will be by improving energy efficiency,” said Mike Lawn, chief of power research at BNEF.

Interestingly, the UK’s feed-in tariff is one of the renewable energy support schemes that enables households and businesses  to save money on their own power bill whilst simultaneously helping the UK move towards meeting its 2020 renewable energy target. Many UK households and businesses have taken advantage of this incentive since it was introduced only a few years ago.

Interested in going solar but not sure where to start? Get a free comparison of solar system quotes from installers in your area by filling out the form to the right of this page. Solar Selections is a free service to our customers.

© 2012 Solar Selections Ltd

The ability to decide their problems are not transmitted by mail, and sell them as possible but not levitra coupons are the daydream of many boys who have decided on a strange act levitra coupon are online and fully accessible.

Leave a Comment

Previous post:

Next post: