The conclusion contradicts the often repeated claims that environmental policy costs drive up utility bills and that major investments in alternative energy power capacity will increase bills by thousands of dollars over the next decade.
Bills are projected to increase by around £110 (US$170) over the next decade, the committee said, with £10 (US$15.50) going into energy efficiency in homes. The organization said that if further energy efficiency improvements are implemented, such as insulation, better heating controls and replacement with more efficient lighting, then energy bills in 2020 could be the same as 2010 levels.
However, to encourage energy efficiency improvements, the Committee said there is need for new policies with strengthened incentives.
“We were keen to provide a dispassionate analysis of household bill impacts in what has become a politically controversial area. We found that bills have increased primarily in response to increased wholesale gas costs and not due to environmental policies. Over the next decade, we anticipate a rise of around £100 (US$170) in the average bill as a result of investment in low-carbon power capacity, which will benefit the UK in the long run. And if we introduce new polices to stimulate energy efficiency improvement then bills in 2020 could broadly be contained at current levels,†said Lord Adair Turner, Chair of the Committee on Climate Change.
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