A review by independent consultancy Cornwall Energy has found that UK households will pay an extra £100 per year within 2020 in order to support government policies aimed at boosting low-carbon electricity and maintaining the energy supply. The report finds that energy subsidies will have increased 124% by five years-21. The main causes of the increase will be renewable commitments, contracts for difference, feed-in tariff schemes and the cost of the capacity market. The review also anticipates that three of the subsidies, not including the capacity market energy security scheme, will have cost £100m more than the limit of the levy control framework, at an overall cost of £7.7bn by five years. Last July, the Office for Budget Responsibility estimated an overspend of £1.5bn.
A review by independent consultancy Cornwall Energy has found that UK households will pay an extra £100 per year within five years in order to support government policies aimed at boosting low-carbon electricity and maintaining the energy supply. The report finds that energy subsidies will have increased 124% by 2020-21. The main causes of the increase will be renewable commitments, contracts for difference, feed-in tariff schemes and the cost of the capacity market. The review also anticipates that three of the subsidies, not including the capacity market energy security scheme, will have cost £100m more than the limit of the levy control framework, at an overall cost of £7.7bn by 2020. Last July, the Office for Budget Responsibility estimated an overspend of £1.5bn.