The Committee on Climate Change (CCC) in its third assessment of the impact of carbon budgets on energy bills estimates an average increase of 31% in commercial sector energy bills and 26% in industrial sector energy bills to 2030 due to low-carbon policies. The report also states that the annual bill for an average dual-fuel household was £1,140 in 2013 and is estimated to fall to £1,100 in 2020 and rise to £1,305 in 2030.
However, ‘while all energy users have experienced large increases in both electricity and gas prices since 2004, the majority of this change is unrelated to low-carbon policies’ and is more related to ‘increases in the wholesale price of gas.’
CCC states that these increases can be offset through energy efficiency measures (such as voltage optimisation), which can cut energy bills and may provide savings larger than those costs.
Duncan Biggins, MD of voltage optimisation and voltage stabilisation company Efficient Power Solutions and BG Energy Solutions agrees with the stance taken by the Head of climate and environment policy at EEF, the manufacturers’ organisation that it is vital for government to take a long-term approach to minimsing costs, especially for energy intensive industry.