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Ed Davey's 2012 Energy Bill: Energy Efficiency yet No Decarbonisation

Ed Davey's 2012 Energy Bill: Energy Efficiency yet No Decarbonisation

  2012-12-03         sparksdirect         Advice » Energy Saving Tips,   Product News » Electrical Items News

We talked previously about the proposals outlined in the Energy Bill, which was published in draft form on the 29th November.

While it's pretty much what we expected, there were a couple of new elements in there.

Through a liveblog, the Guardian provided some real-time analysis from correspondents and Twitter commentators. It makes for interesting reading.

Renewed Dedication to Energy Efficiency 

The 2012 Energy Bill represents a commitment to financial incentives that encourage energy efficiency. Energy-intensive industries like steel and cement factories will be exempted from new low-carbon costs, the bill for which will be picked up by the taxpayer.

The Financial Times estimates that the measures will add around £95 a year to household bills by 2020, representing an increase of 7%.

While it's not entirely clear at this point what effect the bill will have on household bills, these projected figures aren't quite the promised 5-9% decrease.

No Decarbonisation Targets Until 2016

Although nuclear and renewable energy companies are welcoming the bill, environmental groups are crying out for a redraft that includes a decarbonisation target.

It was previously reported that decarbonisation talks would be set back until 2016 - after the next election.

Green investors in particular are annoyed; the lack of any such targets in this bill strike a blow to the sort of long-term investments that are needed for growth in that sector.

It seems that there's still some confusion and this could be an issue that runs on for a long time.

We'd like to hear from our readers in the comments - is the Energy Bill a good thing for the economy overall, or is the impact on householders too much?

Photo by Wendell on Flickr (Creative Commons)