Homes with electric heating face paying £360 a year in green levies

Green levies will account for more than a quarter of an energy bill by 2030 for those with electric heating, Committee on Climate Change forecasts

Households with electric heating face paying £360 a year in green levies by 2030 - more than a quarter of their total energy bill, the Government’s official climate change adviser has warned.

The 7 per cent of UK homes – almost 2 million households – who rely on electricity for their heating will be the hardest hit by the Government’s drive for green energy because subsidies for the technologies are levied solely on electricity bills, a report by the Committee on Climate Change (CCC) shows. These households, typically isolated rural homes or urban flats, already paid an estimated £90 - about a tenth of their £925 annual energy bill - to subsidise wind farms, solar and nuclear power in 2013. The figure is double that paid by households who use gas for heating.

The green levy charge, which includes carbon taxes as well as the subsidies, is estimated to soar to £210 by 2020 and £360 – 28 per cent of a £1,255 annual bill - by 2030 for these electrically-heated households, as Britain builds more renewables. The increase is likely to push many such households deeper into fuel poverty unless ministers take action to help them, the CCC warned.

"These are mostly smaller properties, in particular flats, with a large proportion in the rental sector and with high levels of fuel poverty. As the costs of support for low-carbon investment is currently passed through the electricity bill, these households pay a higher

proportion of their energy bill towards low-carbon policy costs than dual-fuel households," the CCC said. It Almost 2 million households rely on electricity for their heatingsuggested these households should be given financial help to install new kinds of efficient renewable heating systems such as heat pumps to replace old electric storage heaters.

For the majority of households who use gas-fired boilers to heat their homes, the green levy bill will not be as great but will also rise steeply. The CCC estimated the levies made up £45 or 4 per cent of an annual bill of £1,140 in 2013. This would more than double to £100 in 2020 and almost quadruple to £175 or 13.4 per cent of an annual bill of £1,305 by 2030.

The average total energy bill for electrically-heated homes is slightly lower than those for dual fuel households because they are typically smaller properties which use less energy. As well as subsidising green power projects, households face additional levies to fund energy efficiency schemes. These schemes are intended to reduce carbon emissions to help tackle climate change, as well as to help households save money by using less energy.

The CCC estimates that a typical dual-fuel household paid £70 for these schemes in 2013 but that the sum may be lower in future, costing £40 by 2030.
Official Department of Energy and Climate Change estimates, published last month, painted a similar picture of steeply rising levies.  However, DECC’s figures did not separate out the impact on different types of household and therefore mask the increased burden paid by those with electric heating.

http://www.telegraph.co.uk/news/earth/energy/11284190/Homes-with-electric-heating-face-paying-360-a-year-in-green-levies.html

 

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