The chief executive of Centrica has said that customers should not be paying green subsidies through energy bills.
Speaking to the editor of the Spectator, Iain Conn, the chief executive of Centrica, argued against the cost of green subsidies being added to customers’ bills.
Conn highlighted the disproportionate effect of such subsidies saying: “It’s highly regressive to put it through people’s bills because people who have energy as the highest proportion of their out goings, people who are technically ‘fuel poor’ end up disproportionately effected.”
The chief executive also called for greater transparency, highlighting the fact that the cost of government policy on your average bill is £165 compared to the actual cost of electricity which is £134. “We are very much in favour of transparency here, including bills that show how much of your bill is from government policy, how much is from transmission and how much is from suppliers’ profits,” he said.
Mr Conn stressed the need for cheap energy to compete on the global stage, saying that expensive energy (European energy costs are roughly double those of the US) is a serious dent on competitiveness for the UK.
Conn also stressed that an increase in renewable energy would not drive down electricity costs saying: “I don’t expect there to be a revolution in our energy costs in the UK anytime soon whether it’s for fracking gas or from renewables.”