Electricity reforms 'may cut costs'

12/07/11

By Dan Smith

Householders could save money over the next 20 years as a result of electricity market reforms being put forward by the coalition government, ministers have indicated.

The Department of Energy and Climate Change (DECC) suggests that plans contained within its White Paper on Electricity Market Reform will cost households an extra £160 each year in the period leading up to 2030.

However, annual rises of £200 in people's electricity bills are likely to apply if the market remains in its present form.

According to the government, new electricity supplies might require a £110 billion investment in order to properly get off the ground.

Plans to create a much greener economy by developing low-carbon technologies are likely to be focused on by ministers, as ageing power stations come to the end of their lifespans.

The electricity market White Paper will be published by Energy Secretary Chris Huhne.