A report 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 improving the energy supply . The report finds that energy subsidies will have risen 124 % by 2020 - 21 . The main causes of the increase will be renewable energy , contracts for difference , feed - in tariff schemes and the cost of the capacity market . The report also anticipates that three of the subsidies , not including the capacity market and security scheme , will have cost £ 100 m more than the cost 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 .
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.