Due to new changes that have been outlined in a new draft Energy Bill families are going to face higher electricity bills. The changes have been made to increase funding that can be allotted to help develop renewable and nuclear energy.
This is important as the long term energy strategy of the Government is to utilise nuclear power and slowly reduce carbon emissions over time. In order to reduce dependency on fossil fuels and imported gas Britain will also have to increase its overall domestic energy capacity.
Under the new set of plans the Government is going to focus on new long term contracts that will help increase their return on energy by investing in low-carbon generators that will last potentially for a lifetime. In addition, the new measures will help to reduce the high costs that come with wind farms and building nuclear power plants since the costs will be taken care of by the electricity rate increases.
The Government has countered criticism of the increase in consumer bills by stating that in the future the costs of electricity will increase much more if the reforms do not take place making a small increase right now the better move for the entire country.
Ed Davey, the Energy Secretary, stated that Britain needs to start working on its own sources of energy and that over the next decade will need to invest around £110bn in doing so. According to the Department of Energy and Climate Change, the new reforms will increase the average homeowners electric bill by about £160 by 2030; which is still better when compared to the expected increase of £200 if the energy market is not addressed.