In the Queen’s latest speech, she addressed energy problems. This is a hot topic right now in the UK, as people are doing everything they can to keep their lights on. Most families are finding themselves in fuel poverty. Unfortunately, it looks as if things might get a little worse before they get better.
A number of the new laws that were introduced are being put into place to help encourage more companies to build cleaner power stations. The government really wants to encourage these new power plants, as most old coal plants will be closed down this decade. In order to pick up the slack, the UK needs new power stations.
So this leaves one big question: Who is left holding the bill for these new green revolutions in the UK? That would be the consumers, of course. All of the new energy markets that the government wants to support will add around £114 to energy bills by the year 2030. This money will go towards the creation of wind and other forms of clean energy.
These new laws will, of course, support a number of the Coalition’s other subsidies as well. For example, wind, solar and other types of clean energy are going to be supported through the Renewable Obligation Feed-in Tariffs by the year 2030. On top of this, people cannot forget about the increase in carbon taxes in the European Union by 2030 as well.
Despite what experts think, the government says that these new clean energy policies are going to lower bills. The government says this because it will allow Britain to become far less dependent on foreign gas. If Britain continues to rely on foreign gas from places like the United States, prices will surely continue to rise.
Of course, this law does not just encourage energy companies to invest in renewable energy. It also encourages households around the UK to reduce their overall energy consumption. The government hopes that this will stop the prediction of energy bills increasing from £1,255 this year to £1,331 by the year 2020. By the time 2030 rolls around, energy bills will rise to £1,476. Overall, that is an increase of almost £221 in less than 20 years.
The current Energy Secretary, Ed Davey, said that bills will rise some thanks to these new laws. However, this rise is going to be much lower than what the increase would have been if these new policies were not put into place.