Funding a Low Carbon Energy System: a fairer approach?

Abstract:

To recover the cost of energy policies which support the transition towards a low carbon energy system, levies are applied to household and business energy bills. This briefing note focuses on the levies applied to households.

Household energy policy costs

Energy policy costs are applied to household electricity and gas bills, equating to 132, or 13% of the average energy bill in 2016. This research highlights how low-income households are hit hardest by the current arrangements as the poorest households spend 10% of their income on heat and power in their homes, whereas the richest households only spend 3%, so any increase in prices hits the poor disproportionately.

Energy service demands in the UK

Household electricity and gas use represents only 12% of total final UK energy use. Total energy use includes all the energy used to provide househ

Publication Year:

2018

Publisher:

UKERC

DOI:

No DOI minted

Author(s):

Barrett, J., Owen, A. and Taylor, P