Green power” could add £100 a year to electricity bills by 2020 under new government plans.

An estimated £110bn will be needed over the next decade, to renew the UK’s ageing electricity infrastructure.  Much of the needed monies is set to be used on low-carbon power sources such as wind farms.  The long awaited green energy strategy is set to treble the costs levied on bills from £2.35bn a year to £7.6bn.

Experts believe that the increased cost to bill payers for clean energy could reach as much as £178 a year by 2030.  However, whilst a consumer will pay more towards green energy strategies they will also save money through increased energy efficiency at home.

With the approaching arrival of the Energy Bill (Energy Act 2010-2012) which aims to drive the investment, has been the subject of political wrangling within the coalition.  With mixed messages about how committed, the Government is to supporting a greener economy or backing new gas power, but agreement has now been reached on debatable areas.

Some of the key areas that are included and will set to be worthwhile are –

  • the roll-out of smarter meters
  • wider access to energy performance certificates
  • making information on energy bills clearer
  • introduction measures designed to help improve energy security and to encourage low carbon generation

Energy secretary Ed Davey said, “By making sure Britain produces our own clean energy we can insulate consumers and insulate the British economy from imported gas prices which is better for energy security.”

The Government believes the spending level agreed for low-carbon power subsidies will allow the UK to meet goals to supply 30% of electricity from renewable by 2020.  Environmental campaigners have reacted angrily to the news that carbon emissions will not be capped.

John Sauven, Executive Director of Greenpeace, said: “By failing to agree to any carbon target for the power sector until after the next election, David Cameron has allowed a militant tendency within his own ranks to derail the Energy Bill.

“It’s a blatant assault on the greening of the UK economy that leaves consumers vulnerable to rising gas prices, and sends billions of pounds of clean-tech investment to our economic rivals.”