The CCC has recently published an analysis of domestic energy bills which clearly shows that the rise in domestic energy bills has been mainly driven by the cost of gas. Of course, this won't surprise those of us in the industry but it may, just a little, reduce the clamour for reversing those charges related to CO2 reduction. I say "just a little" because much of the popular press appears incapable of rational thought and analysis.
Anyway, the CCC's headline numbers are as follows:
Comparisons were made between 2004 and 2010 when the "typical" household bill rose from £605pa to £1060. So that's a rise of some 75% over a period when general price inflation was about 16%. The CCC suggests that about £290 of the rise was attributable to the wholesale cost of sale, £75 to C-emissions reduction policies (£30 for low-C generation and £45 for EE policies), £70 to increasing transmission and distribution costs and £20 due to VAT.
The CCC goes on to look at the possibile situation in 2010 when it suggests that a further £110 will be added for low-C measures, perhaps £175 for gas costs and £15 for transmission and distribution. The CCC goes on to argue that consumption will fall as the boiler park becomes more efficient and to reflect the severe winter of 2010. So, all-in-all it suggests a typical bill in 2010 will be £1250 (sounds low to me) of which £190 will be for low-C and EE measures.
Is 15% for environmental action justified? I think so but I guess many won't.
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