BRISTOL, UNITED KINGDOM - OCTOBER 17:  Electricity pylons are seen on October 17, 2013 near Bristol, England. British Gas, who supply energy to almost eight million households in the UK, have announced price increases of at least 8.4% which will come into effect on November 23, 2013.  (Photo by Matt Cardy/Getty Images)

Energy price review fails to deal with crux of the problems

A review into the cost of energy in the UK does not have the power to recommend tax changes.

The UK government announced a review into energy prices on Sunday. The review will be lead by Dieter Helm, an oxford academic.

This government announcement comes a week after British Gas announced a 12.5% increase in bills citing the “significant pressures” of green subsidies.

A co-founder of The Big Deal, an energy collective, said that: “With this review, the government is simply kicking the can down the road.”

The review will “will consider the key factors affecting energy bills, including but not limited to energy and carbon pricing, energy efficiency, distributed generation, regulation of the networks, innovation and R&D”.

The UK has some of the highest electricity costs in the world which is expected to be a major problem in post Brexit trade negotiations .

The CEO of British Gas’s parent company, Centrica, cited government policy and green energy as the reason for the increase in prices: “Government policy costs of making it lower carbon are actually also driving it.”

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