Households ‘to get cash back’ for saving energy
Author: Rowena Mason, the Telegraph |
Households could be given cash back through their electricity bills if they reduce their consumption by installing green light bulbs and appliances, the Government said last night.
Edward Davey, the Energy Secretary, said he plans to reduce electricity demand dramatically across the UK, as households face rising energy bills.
Households, which are currently paying an average dual fuel bill of £1,300 a year, could get money back for each unit of electricity they save under the new plans.
This would give a double financial reward, through lower bills and money back on top of this.
The proposals come on the eve of the publication of the Energy Bill, which will pave the way for thousands of extra wind turbines and several nuclear power stations.
Current estimates suggest bills will rise by £178 per household by 2030 under the Government’s current package of energy measures. Within eight years, the cost of nuclear and wind farms is likely to make up £94 of the average bill.
These figures are expected to be updated today, as ministers calculate the cost of overhauling Britain’s energy system to help reduce carbon dioxide emissions and reliance on foreign gas.
Last night, ministers also revealed they would exempt heavy industry from paying “low carbon costs” for wind farms and nuclear power stations.
There are fears that the high price of paying to replace fossil fuel stations with low-carbon energy would bankrupt some businesses or send them overseas.
The extra cost of helping out heavy industry is expected to be covered by households, but the Government insisted there would only be a “small” effect on energy bills.
Last night, Mr Davey said the Coalition is “absolutely determined to help cut energy bills for consumers, reduce costs for businesses and bring down our emissions.
“We need to make our energy supply fit for the 21st century, and in a world of rising gas prices we must power our homes and businesses in a much more efficient way.
“That’s why today I am setting out economy wide, ambitious proposals to cut electricity demand. These build on our energy efficiency strategy published earlier this month and will help us lower bills and reduce the need for expensive new energy generation.”
He suggested that households could be using 10 per cent less energy by 2030.
The Department for Energy’s plans for “financial incentives” to encourage energy efficiency come on top of its £1 billion Green Deal.
This scheme offers loans to households for energy-saving home improvements such as loft insulation and better boilers.
Not a single household has yet registered for the deal but the Government is planning a £2.9 million marketing push to sell the loans to consumers next year.