The voice of the energy industry

Consumers need honest explanation of policy costs

In response to the Prices and Bills Report 2014, published by the Department of Energy and Climate Change, Energy UK said:

Customers need to understand how all costs pass through to energy bills and anything that helps explain is good news. But there must be an open conversation between users, energy companies and government about how the UK balances keeping bills at a realistic level while funding the massive investment needed.

Transparency is at the heart of that debate and the government’s explanation of the full range of policy and social costs it adds to the average gas and electricity bill helps explain bills better. Their explanation works in tandem with efforts from the industry to make bills simpler to understand.

Efforts to help lower customer bills are a step in the right direction but it is important to remember that these savings are for an average bill. On average, savings may outweigh the costs but not all customers are eligible for the measures. Not everyone qualifies for the Warm Home Discount and not everyone has had Energy Companies Obligation’s energy efficiency measures installed. The government must find the most cost effective way to pay for its initiatives. Moving policy costs into general taxation would be a fairer way of paying for these schemes.

Government policies also affect businesses, large and small. It is vital for the nation’s economy that their concerns about increasing costs are taken into account.

The energy industry will continue to call for an open and honest debate on energy. Companies, policy makers and stakeholders must work together to get the best deal for both domestic and businesses customers.


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