2010 Estimated impacts of energy and climate change policies on energy prices and bills report

Released on 11/07/2011

The report indicates that energy bills for medium-sized non-domestic businesses will increase by approximately 24% and 43% for gas and electricity respectively as a result of climate change and energy policies.  However the report also acknowledges that the impact will have other costs and benefits outside their electricity and gas bills. A number of policies such as Carbon Reduction Commitment (CRC) and Climate Change Agreements (CCA) have been used in assessing the impact. 

 A summary of the estimated impact of energy and climate change policies on average non-domestic retail gas and electricity prices and an average medium-sized non-domestic user’s energy bill is presented below. 

The full report can be downloaded at Impact of Climate change and energy policies.

Price impacts (real 2009 £/MWh and % change)
Increase in gas prices due to policies2 (6%)3 (10%)7 (24%
Increase in electricity price due topolicies15 (20%)23 (28%) 37 (43%)
Energy bill (gas + electricity) impacts (real 2009 £000s and % change)
Estimated average energy bill withoutpolicies£1,217 £1,327 £1,410 
Estimated average energy bill withpolicies£1,392 £1,477£1,778 
Impact of policies on energy bill £175(14%)£150(11%)£368(26%)
Source: adapted from DECC report 2010

Numbers may not add up due to rounding0