The U.K.’s plan to build new power plants and cut pollution will be
the main driver behind a jump of almost 20 percent in bills by the end
of the decade, according to the utility RWE AG.
Policies that
spur a low-carbon economy such as a tax on emissions and subsidies for
renewable energy will cause the average household electricity bill to
rise to 1,487 pounds ($2,244) in 2020 from 1,247 pounds now, RWE’s unit
operating in Britain said in a report.
The study adds fuel to the
debate over the cost of energy in the U.K., where energy suppliers
including RWE and SSE Plc garnered criticism from consumer groups such
as comparison website uSwitch Ltd. for reporting higher profits as bills
increase. Britain needs to replace the fifth of its power generation
that is scheduled to retire within 10 years. It’s seeking to tap cleaner
sources of energy such as wind and solar, funded by raising the cost of
power for consumers.
“Government policy is rightly delivering
the transformation we need to address the U.K.’s poor housing stock and
encourage investment required in new infrastructure,” said Paul Massara,
chief executive officer at RWE Npower Plc. “But achieving these
aspirations comes at a cost, and this is what needs to be clearly
communicated to consumers.”
Massara urged government and energy
companies to be clearer about reasons behind bill rises to help
consumers reduce use, because suppliers control only about 16 percent of
a bill, Energy monitor RWE said.
The
costs of policies such as requiring energy companies to improve home
efficiency are expected to rise 78 percent by 2020, while upgrading
networks to accommodate new low-carbon projects such as wind farms will
add a further 114 pounds to bills by that year, a 124 percent increase
from 2007, RWE said.
The portion of bills spent on gas and
electricity will decline to 35 percent from 45 percent now as policy and
network infrastructure take up bigger shares, it said.
RWE’s
forecasts are for a greater rise in household energy bills than the
government predicts. The Department of Energy and Climate Change said in
March that the average consumer bill for power and gas will rise 6
percent to 1,331 pounds in 2020 from about 1,255 pounds this year,
excluding inflation.
The government predicts that the annual
286-pound cost of renewable energy subsidies in 2020 will be outweighed
by 452 pounds worth of savings created by policies to make electrical
products more efficient, insulate homes and install more efficient
boilers and smart meters to monitor energy use.
Coastal habitats
– especially if left intact – can protect vulnerable oceanfront land
and the people who live there, says author Katie Arkema, a Seattle-based
marine ecologist with the Natural Capital Project.
"The waves
break on coral reefs or coastal forests, and therefore lose energy,"
says Mary Ruckelshaus, who works with Dr. Arkema at the Natural Capital
Project, a partnership among Stanford University, The Nature
Conservancy, the World Wildlife Fund, and the University of Minnesota.
This strips the waves of their power to erode land, flood buildings, and
wreak the havoc seen after storms like Sandy and Katrina. Other coastal
habitats, like dunes and seagrasses, work in different ways, but they
all "diffuse the energy in the waves, and reduce how much they can erode
the shoreline," she adds.
Click on their website www.owon-smart.com for more information.
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