Review into energy costs launched by government

Bruno Cirelli
Agosto 6, 2017

Ministers want the country to have the lowest energy costs in Europe for households and businesses.

The Government-backed study will look at how the United Kingdom can meet its climate change targets while also keeping costs down for consumers.

But the review's launch came days after energy giant British Gas hiked electricity prices by 12.5 per cent for 3.1 million customers.

It will look for ways of reducing costs and consider how moving to electric vehicles and developments in storing energy, robotics and artificial intelligence will affect the industry.

Prof Helm's work will not look at whether a cap should be imposed on price rises - a flagship Tory election commitment which has been watered down since Theresa May lost her Commons majority.

It will consider how costs can be reduced at all stages of the energy supply chain, as well as the impact of new technology on the sector.

The review, headed by Oxford University professor Dieter Helm, will investigate key factors affecting bills, including energy and carbon pricing, efficiency measures and regulation.

"My review will be independent and sort out the facts from the myths about the cost of energy, and make recommendations about how to more effectively achieve the overall objectives".

By 2050, the United Kingdom is legally obliged to reduce greenhouse gas emissions by at least 80% from 1990 levels.

Britain's government launched a review on how best to reduce long-term energy bills for households and business on Sunday, prompted in part by concern that high electricity costs could damage industrial competitiveness.

The regulator said it is considering extending a price cap on energy bills to more households on low incomes.

The study will examine how the United Kingdom can keep household bills down while also meeting its climate change targets.

Business and Energy Secretary Greg Clark said: "All homes and businesses rely on an affordable and secure energy supply and the government is upgrading our energy system to make it fit for the future".

Alex Neill from Which? said: "Consumers need to see urgent action from the government and regulator to tackle the lack of competition in the market and to ensure they are getting a good deal".

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