Energy: Prices

(asked on 7th July 2015) - View Source

Question

To ask the Secretary of State for Energy and Climate Change, what estimate she has made of the average change in household energy bills which occurred as a result of measures announced in the 2013 Autumn Statement.


Answered by
Andrea Leadsom Portrait
Andrea Leadsom
Parliamentary Under-Secretary (Department of Health and Social Care)
This question was answered on 13th July 2015

In November 2014 DECC published estimates of the impact of energy and climate change policies on energy prices and bills[1]. The report included an estimate of the impact of the package of measures for household energy bills announced at the 2013 Autumn Statement.

The report set out that the total reduction in individual household energy bills will depend on the energy supplier but estimated that, on average, this package was worth around £50 (including VAT) per household in 2014, broken down as follows:

· A Government Electricity Rebate of £12 on household electricity bills in 2014/15 and 2015/16 delivered by energy suppliers.

· A reduction in the cost of the Energy Company Obligation (ECO). While costs will vary across companies, the major energy suppliers announced that the changes will result in an average £30-£35 off bills in 2014.

· Voluntary action by electricity distribution network operators (DNOs) to reduce network costs in 2014/15, leading to a further one-off deferral of around £5 on electricity bills on average.

[1] https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills-2014

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