I looked the other day at the impact on electricity bills of UK climate policies, which showed that, by 2020, prices could be 40% higher than they would be otherwise. But what does this mean in terms of overall costs in the UK?
The overall cost for domestic users is pretty simple to work out, as DECC give us the annual consumption of electricity by sector, which last year was 113TWh. Under the central assumption of fossil fuel prices, which assumes small real price increases between now and 2020, the price of electricity is forecast by the government to be £53/MWh higher than the price of £141 without climate policies.
On an annual usage of 113TWh, therefore, this equates to an extra cost a year of £6.0bn by 2020. (The cost already being incurred this year is said to be £2.7bn).
Under the assumption of lower fossil fuel prices, which we are currently seeing, this cost increases to £6.2bn by 2020.
(Remember that all these costs are calculated at 2014 prices, so do not allow for normal inflation in years to come).
It is also worth bearing in mind that demand for electricity from domestic users is more likely to increase rather than fall, despite government projections to the contrary, as decarbonisation of transport and domestic heating is stepped up. Usage last year was 2% higher than 2011, despite the mild winter.
more
The Cost Of The UK Govt’s Climate Policies | NOT A LOT OF PEOPLE KNOW THAT
simon scando @SCANDOY
Renewable Energy = the biggest lie of 21st century propagated by the German 4th Reich Regime = EU & it won't get bigger
The overall cost for domestic users is pretty simple to work out, as DECC give us the annual consumption of electricity by sector, which last year was 113TWh. Under the central assumption of fossil fuel prices, which assumes small real price increases between now and 2020, the price of electricity is forecast by the government to be £53/MWh higher than the price of £141 without climate policies.
On an annual usage of 113TWh, therefore, this equates to an extra cost a year of £6.0bn by 2020. (The cost already being incurred this year is said to be £2.7bn).
Under the assumption of lower fossil fuel prices, which we are currently seeing, this cost increases to £6.2bn by 2020.
(Remember that all these costs are calculated at 2014 prices, so do not allow for normal inflation in years to come).
It is also worth bearing in mind that demand for electricity from domestic users is more likely to increase rather than fall, despite government projections to the contrary, as decarbonisation of transport and domestic heating is stepped up. Usage last year was 2% higher than 2011, despite the mild winter.
more
The Cost Of The UK Govt’s Climate Policies | NOT A LOT OF PEOPLE KNOW THAT
simon scando @SCANDOY Renewable Energy = the biggest lie of 21st century propagated by the German 4th Reich Regime = EU & it won't get bigger