|
|
<p>The following table sets out the total estimated costs of energy and climate change policies funded by levies on energy companies since 2002. For some policies this is not available on an annual basis and costs are shown over the entire lifetime of the policy. Costs are shown for calendar years or financial years depending on the policy. Policy costs are passed on through energy bills and it remains up to the energy supplier if and how to recover these costs.</p><p><table><thead><tr><td valign="top">Estimatedcosts of energy and climate change policies since2002<br /></td></tr><tr><td valign="top">Policy<br /></td><td valign="top">Timeperiodconsidered<br /></td><td valign="top">Estimatedcost to date (£ billion, real 2012prices)<br /></td></tr></thead><tbody><tr><td valign="top">EnergyEfficiency Commitment (EEC)I<br /></td><td valign="top">April2002 to March2005<br /></td><td valign="top">10.5<br /></td></tr><tr><td valign="top">EnergyEfficiency Commitment (EEC)II<br /></td><td valign="top">April2005 to March2008<br /></td><td valign="top">1.1<br /></td></tr><tr><td valign="top">CarbonEmissions Reduction Target(CERT)<br /></td><td valign="top">April2008 to March2011<br /></td><td valign="top">23.4<br /></td></tr><tr><td valign="top">CarbonEmissions Reduction Target (CERT)Extension<br /></td><td valign="top">April2011 to December2012<br /></td><td valign="top">2.0<br /></td></tr><tr><td valign="top">CommunityEnergy Saving Programme(CESP)<br /></td><td valign="top">October2009 to December2012<br /></td><td valign="top">0.3<br /></td></tr><tr><td valign="top">EnergyCompanyObligation*<br /></td><td valign="top">2013<br /></td><td valign="top">—<br /></td></tr><tr><td valign="top">Feedin Tariffs3(FiTs)*<br /></td><td valign="top">2010-11<br /></td><td valign="top">0.01<br /></td></tr><tr><td valign="top" /><td valign="top">2011-12<br /></td><td valign="top">0.15<br /></td></tr><tr><td valign="top" /><td valign="top">2012-13<br /></td><td valign="top">0.50<br /></td></tr><tr><td valign="top">RenewablesObligation4*(RO)<br /></td><td valign="top">2002-03<br /></td><td valign="top">0.38<br /></td></tr><tr><td valign="top" /><td valign="top">2003-04<br /></td><td valign="top">0.56<br /></td></tr><tr><td valign="top" /><td valign="top">2004-05<br /></td><td valign="top">0.64<br /></td></tr><tr><td valign="top" /><td valign="top">2005-06<br /></td><td valign="top">0.73<br /></td></tr><tr><td valign="top" /><td valign="top">2006-07<br /></td><td valign="top">0.88<br /></td></tr><tr><td valign="top" /><td valign="top">2007-08<br /></td><td valign="top">1.04<br /></td></tr><tr><td valign="top" /><td valign="top">2008-09<br /></td><td valign="top">1.18<br /></td></tr><tr><td valign="top" /><td valign="top">2009-10<br /></td><td valign="top">1.23<br /></td></tr><tr><td valign="top" /><td valign="top">2010-11<br /></td><td valign="top">1.42<br /></td></tr><tr><td valign="top" /><td valign="top">2011-12<br /></td><td valign="top">1.53<br /></td></tr><tr><td valign="top" /><td valign="top">2012-13<br /></td><td valign="top">1.99<br /></td></tr><tr><td valign="top">WarmHomeDiscount5*<br /></td><td valign="top">2011-12<br /></td><td valign="top">0.24<br /></td></tr></tbody><tfoot><tr><td valign="top">*Activepolicies<br />1Calculations of EEC I, EEC 11, are based on an evaluation of costs byEoin Lees Energy, availableat:<br />http://eoinleesenergy.com/<br />2Calculations of CERT, CERT Extension and CESP are based on impactassessments published byDECC<br />3Costs represent FITs Levelisation Fund, and include generationpayments, deemed export payments claimed by generators, qualifying(administration) costs claimed by FIT licensees, minus the value ofdeemed export to licensed electricitysuppliers.<br />Figuresfor 2010-11 and 2011-12 are taken from the Ofgem Annual FITs Report forthose years, availableat:<br />https://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/feed-tariff-reports/annual-reports<br />Figuresfor 2012-13 are taken from Ofgem FITs Quarterly Update reports,availableat:<br />https://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/feed-tariff-reports/fit-update-reports<br />Thesefigures should be treated as provisional Final figures for 2012-13 willbe published in the 2012-13 FITs Annual Report (to be publishedDecember2013).<br />4Spending under the Renewables Obligation is calculated as the overallobligation multiplied by the buy-out price. These figures can be foundin Ofgem’s RO annual reports for 2002-03 to 2011-12, availableat:<br />https://www.ofgem.gov.uk/environmental-programmes/renewables-obligation-ro<br />For2012-13, the obligation level and buy-out price can be foundat:<br />https://www.ofgem.gov.uk/publications-and-updates/renewables-obligation-total-obligation-levels-2012-13<br />5Ofgem (2012) “Warm Home Discount Scheme AnnualReport—Scheme Year1”:<br />https://www.ofgem.gov.uk/ofgem-publications/58950/whdar08oct2012.pdf<br />6https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills<br /></td></tr></tfoot></table></p><p>The above figures do not account for the direct benefits to energy consumers from these policies and the impact they have in helping to offset costs. For example, the Government’s latest estimate of the total impacts of energy and climate change policies (i.e. not just those levied on energy suppliers) on energy prices and bills<Sup>6</Sup> finds that in 2013 households are estimated onaverage to save around 5% (or £65) on their energy billscompared to what they would have paid in the absence of policies. Thisis because the total monetary savings from policies which helphouseholds save energy more than offset the necessary cost of investingin new capacity and efficiency. By 2020 it is estimated that householdswill save on average 11% (£166) on their energy bills comparedto what they would have paid in the absence ofpolicies.</p> |