Skip to main content

Energy Bills

Volume 541: debated on Thursday 8 March 2012

12. What assessment he has made of the likely effects on household energy bills of changes to the feed-in tariff scheme. (98670)

We estimate that our new, reformed scheme, upon which we are currently consulting, will add just £8 to the average household energy bill in 2020. That is around £50 less than FITs would have cost if we had continued with the previous policy. Obviously, there is a great deal of uncertainty in these numbers, which depend on future technology costs and market growth.

Hard-pressed constituents of mine in Gloucester will be grateful for the Minister’s answer. Does he think there are lessons to be learned from Germany in terms of the total amount of energy consumed by households? If we replicated the amounts used in Germany, that would heavily reduce bills in this country.

My hon. Friend is right. In Germany, although electricity prices are higher, not least because of the support for renewables, bills are broadly comparable with those in the UK because domestic energy efficiency is much better. That is exactly the sort of transformation that we are determined to drive forward in the UK with the launch of the green deal later this year.