Energy news has dominated the headlines this autumn with fuel bills soaring up to 11 per cent and the disclosure that seven in ten households pay over the odds for power. For many it is going to be a choice between an expensive winter or switching the heating off and enduring an incredibly gruelling cold season.
The Government's response has been two rather revolutionary announcements; earlier in November the Energy Efficient Strategy was published outlining how a transformation in the way energy is used across the UK economy could save up to 22 power stations-worth of energy by 2020.
Energy and Climate Minister Greg Barker stated: "We have put energy efficiency at the very heart of the Government's energy policy. Using energy more wisely is absolutely vital in a world of increased pressure on resources and rising prices. Not only can energy efficiency help save money on bills and cut emissions, it can support green jobs, innovation and enterprise."
While this isn't ground-breaking stuff, more common sense, the team here at ATASS Energy welcomed this news. It puts the case for renewable energy back in the spotlight supporting the investment already made by consumers and businesses in the essential energies of the future.
However the announcement that has made the biggest headlines is the Government's attempt to rein in the 'Big Six' energy suppliers. Their intention is to restrict each supplier to only four tariffs for ease of consumer choice of the most cost effective option. Yet reforms will not be compulsory until the summer of 2014 by which time it is likely the companies will have worked out how to increase their lowest tariff thereby implementing a higher minimum price for consumers than exists now. And why wouldn't they? Energy companies are running businesses and have overheads and maintenance works in the form of upgrading pipes and networks. All these considerations contribute to the cost of a consumer's fuel bill. But a large percentage of the cost that makes up household bills is linked to global fuel prices. While we are reliant on the world oil and gas markets, reducing the number of tariffs cannot stop the rising price of even the cheapest rate.
There should be less furore over the number of tariffs and more concentrated investment and education over the development and choice of renewable energies. Certainly lower domestic energy bills allows a higher disposable income to spend elsewhere in the economy, and reduced running costs for businesses has a powerful effect on the bottom line. Renewable energies will deliver these cost savings but importantly they will also protect everyone from the expensive effects of rising world energy prices. Surely this is the key to a stable energy-rich future.