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Household bills to fall 7% by 2020

Household bills to fall 7% by 2020

Given that forecasted rises in energy bills were cited as the driver behind government changes to renewable subsidies, the information dragged out of DECC is ever so slightly inconvenient.

A FoI request has revealed that DECC actually expect average household energy bills to fall 7% by 2020.  The increase in renewable generation is a significant driver of this - as are cheaper hydrocarbons - and as more wind and solar electricity comes on stream, the effect on wholesale prices is greater. Once installed,  wind and solar require no fuel inputs and very little maintenance. After the capital investment is deployed, the ongoing cost of generation is extremely low and will not be turned off by the effect of falling prices. The same cannot be said of gas fired and nuclear generation.

Household bills to fall 7% by 2020

It is a delicious irony that it is those same wicked, subsidy hungry renewable energies which were blamed for increasing household bills will actually be the reason they drift lower.

Incidentally, the same report observes that DECC projects that wholesale energy prices will fall to around the 5 pence/kWh mark by 2020; we observe that that is the price our customers are already achieving by generating and using their own electricity. 

You can read the full report on the latest skulduggery from DECC here.

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