A recent opinion piece in FT View highlighted the need for more transparency over the cost of the UK Government’s transition to greener energies amid political pressure to address rising bills.
Britain’s big six energy providers are feeling the heat of Theresa May’s pledge to end the standard variable tariff “rip-off”, and have already started acting to pre-empt anticipated government intervention.
The editorial noted that “energy suppliers resent being blamed for high prices when the government has failed to regularly quantify and explain the impact of its green policies on household bills.”
Market leader Centrica has already removed £600 million in costs from its business since 2015, and yesterday suggested taking the £5 billion a year cost of the transition to clean power out of energy bills, to be instead funded through taxation.
The group chief executive of Centrica, Iain Conn, said this would take £200 a year off the average energy bill and would link it to the consumer’s ability to pay, a fairer approach to pricing.
A recent report by Dieter Helm found that UK households are paying significantly more for green subsidies than initially forecast and that investment into reducing carbon emissions could have been achieved at a much lower cost.