Your independent energy adviser
0800 051 5770

Clean energy means rising bills for consumers

utility billIt’s not good news for consumers with energy bills set to rise due to failing renewable energy schemes.

Under the previous coalition government, consumers and businesses were encouraged to produce renewable energy and guaranteed a subsidy for doing so.

The subsidies were paid for by a “levy” on household energy bills, which was meant to be capped to ensure that bills did not rise too fast.

But this is no longer the case. Due to lower oil and gas prices as well as more solar panel installation than anticipated, the subsidy budget has long been blown.

This will put a stop to further subsidies for renewable energy development and could mean that the UK won’t hit its carbon reduction target.

Any additional investment in renewables would have a direct impact on consumer energy bills. Worrying news as when it comes down to it, customers want cheap energy and anything hampering this could affect current public support for renewable technology.

“Household energy bills have soared in recent years,” said Richard Howard, from DECC.

“Government should take its decarbonisation commitments extremely seriously but must also recognise that what consumers really want is affordable energy.

The new government have therefore put a stop to wind farm subsidies in order to invest in North Sea oil and fracking, hoping these methods will keep energy prices at affordable levels.

We suggest locking your prices in ahead of time to protect your business from rising costs. To find out more, give us a call on 0800 051 5770.