We talked previously about the proposals outlined in the Energy Bill, which was published in draft form on the 29th November. While it’s pretty much what we expected, there were a couple of new elements in there.
Through a liveblog, the Guardian provided some real-time analysis from correspondents and Twitter commentators. It makes for interesting reading.
Renewed Dedication to Energy Efficiency
The 2012 Energy Bill represents a commitment to financial incentives that encourage energy efficiency. Energy-intensive industries like steel and cement factories will be exempted from new low-carbon costs, the bill for which will be picked up by the taxpayer.
The Financial Times estimates that the measures will add around £95 a year to household bills by 2020, representing an increase of 7%.
While it’s not entirely clear at this point what effect the bill will have on household bills, these projected figures aren’t quite the promised 5-9% decrease.
No Decarbonisation Targets Until 2016
Although nuclear and renewable energy companies are welcoming the bill, environmental groups are crying out for a redraft that includes a decarbonisation target. It was previously reported that decarbonisation talks would be set back until 2016 – after the next election.
Green investors in particular are annoyed; the lack of any such targets in this bill strike a blow to the sort of long-term investments that are needed for growth in that sector.
It seems that there’s still some confusion and this could be an issue that runs on for a long time.
We’d like to hear from our readers in the comments – is the Energy Bill a good thing for the economy overall, or is the impact on householders too much?