Green policies 'will cost 30 per cent more'

05/09/11

Kev Kiernan

Bringing in more environmentally friendly Government policies will result in the average UK household having to fork out £300 extra every year just to pay their fuel bills, according to a Downing Street adviser.

Policy adviser Ben Moxham has reportedly told Prime Minister David Cameron that the average household fuel bill of £1,059 will rise 30 per cent by 2020 because of policies such as so-called carbon pricing.

The Daily Telegraph writes that the cost of such policies, like encouraging firms to help low-income homes improve energy efficiency or using renewable sources to supply electricity, will be passed on to the consumer.

Mr Moxham also reportedly disagrees with Energy Secretary Chris Huhne's assertion that price rises will be "offset" by lower energy use resulting from gas and electricity supply being more efficient.

A Department for Energy and Climate Change spokesman said: "Reforms will not add £300 to bills. Our policies will both add and subtract from future bills because we need to build new reliable energy sources to keep the lights on but we'll also be helping people to cut their bills through greater energy efficiency."