The Government have announced proposals that will aim to save homeowners money on their energy bills.
The proposals known as the energy drive will lower energy bills for homeowners by 2020 saving them up to £100 on their annual bill.
Energy Secretary Ed Davey presented the energy bill to Parliament at the beginning of the month detailing that utility firms would be allowed to increase the ‘green’ levy from £3bn to £7.6bn a year. This has been estimated by energy experts that this could potentially increase energy bills. However Davey maintained that household bills would be 7% or £94 a year lower by 2020 than what they would have been if the energy proposals weren’t introduced.
The savings would come from measures that would reduce the amount of energy usage and improve efficiency. It has been estimated that £110billion is needed over the next decade to change the UK’s energy infrastructure.
Amongst other plans detailed in the bill was a two month consultation for firms and individuals that install fuel efficient equipment. If this is taken on, firms could pay to have permanent reductions within their electricity usage.
Audrey Gallacher, from Consumer Focus, told the Daily Mail: “This Bill represents one of the biggest changes in the UK energy market since privatisation, yet many of the important details are still to be decided.
“What customers will be most worried about is how this will increase their bills – so the Government must make clear how they will control costs to the consumer.
“Customers recognise that making our energy supply greener and more secure will come at a cost. But given the huge sums involved and the extra costs consumers will bear, people need guarantees that they are getting value for money.”
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By Amanda Bainbridge