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Energy Price Rises Put Green Initiatives in Limelight

24th October 2013

As British Gas and NPower joined SSE with an energy price rise of around 8-10%, the government’s ‘green taxes’ have been identified by some as the main culprit.  However, a closer look reveals that the green element to our energy bills could be the biggest positive in the story.
Our duel energy bills are made up of wholesale energy supply and profits (62%), distribution (16%), building and maintaining transmission networks (3%) and VAT, all of which will invariably increase over the coming years, unless something drastic is done to reduce our reliance on fossil fuels and imported energy.  The final element of the bill is ‘green energy contribution’ (8.5%) which funds the government’s schemes aimed at saving energy, reducing emissions and tackling climate change.  It can be argued that is the only element that brings a tangible benefit for our energy future.

Climate change is still a major issue worldwide so we need to invest in renewable energy to reduce our carbon emissions and reliance on fossil fuels. Solar PV, wind, biomass and heat pump technologies all play an important role in the future of the UK’s energy mix and carbon reduction targets. 

Energy price security and price volatility is caused by our reliance on imported energy; this is set to increase as we have committed to closing 11GW capacity of coal and oil power stations by 2016. Once again, the investment in renewable energy is proactive in that it will provide an energy supply at a stable rate.  Renewable energy could also ultimately reduce wholesale prices as was the case in Germany.

Finally, the government’s strategy to improve UK buildings by encouraging investment into energy efficiency measures will reduce energy consumption.

The best place to be is an investor in renewable energy and energy efficiency.  An investment in solar, wind or heat technologies will bring a return on your investment, savings on your energy bills and a reduction in carbon emissions, whilst improved energy efficiency will continue to generate savings for years to come.

If your energy bills are going up call our Energy Team on 0845 643 2528.