Tuesday 16 October 2012

Energy efficiency could cut bills by £10bn

The Government should encourage energy efficiency as it could cut bills by £10 billion a year.

That’s according to a new report by environmental groups Green Alliance and WWF, which claims effective measures to reduce electricity use could cut 40% of the demand by 2030. They suggest the Government should create a “market” for electricity savings.

The research claims current policies in the UK to tackle energy demand are “not ambitious enough” and will only deliver a "third of the UK’s electricity saving potential" by 2030.

David Nussbaum, Chief Executive of WWF-UK said: “Energy efficiency is the obvious ‘win-win’ in the upcoming reform of our electricity market; keeping a check on rising energy bills while also reducing our dependency on fossil fuels. Thus far the draft Energy Bill has failed to recognise this gilt-edged opportunity and energy efficiency is conspicuous only by its absence… WWF urges Government to ensure that when the Energy Bill is published it includes options to adequately incentivise energy efficiency.”

The research suggests an efficiency Feed-in Tariff (EE FiT) would be most effective and simple way to lower consumers' energy bills.

Last month Ofgem announced it would fine suppliers if they fail to meet their targets for putting efficiency measures in people's homes.