Fossil fuels 'add £300 to bills'

17/10/11

By Emma McFarnon

Claims that green taxes are to blame for the hike in energy bills have been discredited by environmentalists, whose research has suggested it is continued reliance on fossil fuels that will push prices up.

A report by Friends of the Earth indicates that household electricity bills could rise by a further £300 if dependence on fossil fuels to provide energy continues.

Explaining its workings, the report claims electricity bills rose by 30 per cent in real terms between 2000 and 2010, while gas bills soared 78 per cent. If gas and coal costs rise in the coming decade at the same rate, it will cost the nation an additional £8 billion a year by 2020 to generate electricity. Broken down, this amounts to £300 extra per household.

Consequently, environmentalists argue that investment in fossil fuel plants rather than renewables would leave British households shelling out more, to cover the increasing costs of coal and gas to make electricity.

Friends of the Earth warn bills would continue to spiral if the Big Six energy companies were to abandon building renewable energy sources such as wind power and fossil fuel plants.