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‘UK households face £200 increase in energy bills’

Posted at March 13, 2024 » By : » Categories : News » Comments Off on ‘UK households face £200 increase in energy bills’

Analysts have warned that millions of households across the UK could face a notable increase in their energy bills due to government plans to reinforce energy security with additional gas-fired power stations.

The plan, unveiled by the Prime Minister on Tuesday, is estimated to cost consumers around £5 billion, resulting in an additional financial burden averaging £178 per household over a decade or longer.

Tom Smout, of Aurora Energy Research, which conducted the findings, said: “What consumers are being asked to buy is energy security.

“The priority is to keep the lights on by having backup for the intermittency of renewables.

“An extra 5Gw of new backup generating capacity is needed to keep the lights on. Each gigawatt of capacity will cost about £1 billion.”

According to newly released government documents, efforts to enhance Britain’s energy security through the construction of additional gas-fired power stations will be financed by increased payments to plant operators.

This funding mechanism, facilitated through the capacity market, utilises an auction system to compensate operators for maintaining a 24-hour standby status, ensuring power delivery during periods of supply scarcity.

Energy Live News has contacted the Department for Energy Security and Net Zero for comment.

Article source: https://www.energylivenews.com/2024/03/13/uk-households-face-200-increase-in-energy-bills/

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