'Green' boost for energy bills

Green measures like insulating homes and using energy efficient boilers are helping to lower fuel bills, according to a new government report. The Energy Secretary Ed Davey said he expects such measures to have a larger impact over time.

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Govt: Just 9% of your energy bill goes on green policies

The government has defended its energy and climate change policies pointing out that they account for just 9% of the average household bill - equivalent to £112.

This is how the average bill breaks down:

  • Fossil fuel prices - 47%, or £598
  • Network costs or transport and distribution of energy - 20%, or £257
  • Government policies (including renewable energy policies) - 9%, or £112
  • Renewable energy policies - 2.4%, or £30

A report from the Department for Energy and Climate Change (DECC) says that 85% of the rise in household bills between 2010 and 2012 was from wholesale energy costs and network costs, and 15% as a result of government policies.

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