NCPA - National Center for Policy Analysis

Households Face £769-a-Year Rise in Power Bills to "Rewire the Nation" for Green Energy

October 12, 2010

A £200 billion (about $317 billion) plan to switch to green energy could cost U.K. households an average of £769 (about $1,220) a year, says the Daily Mail.  The first stage, a £32 billion (about $50 billion) plan to build new pipelines and pylon networks, has already been given the go-ahead.

Industry regulator, Ofgem, said a massive construction plan is needed to build new wind farms, power stations (including nuclear) and a modern national grid.

  • Ofgem said this element will cost households a relatively modest sum of an average of £6 (about $9.50) a year.
  • However, David Hunter, an analyst at the M&C Energy Group, warns: "Customers should expect a 60 percent hike in bills over the next decade or so."
  • Other industry analysts said the full £200 billion cost would up the average annual bill of£1,194 by £769 a year -- or 68 percent -- to £2,000.

"The £32 billion needed to improve Britain's pipes and wires network is only a fraction of the overall cost of the investment program which equates to £769 per household.  If consumers do end up footing the bill we could see the average annual household energy bill reach over £2,000, a huge 68 percent rise," says energy expert Tom Lyon.

Source: Sean Poulter, "Households Face £769-a-Year Rise in Power Bills to 'Rewire the Nation' for Green Energy," Daily Mail (U.K.), October 5, 2010.

For text:


Browse more articles on Environment Issues