Relationship with energy will fundamentally change by 2030, says Huhne

Energy and climate change secretary Chris Huhne delivered the Annual Energy Statement to Parliament on Wednesday 23 November. The annual statement is a Coalition agreement and summarises the Government's actions and progress towards its energy objectives. Huhne said the Government will secure the UK's energy at the lowest cost in the short term by promoting competition, in the medium-term by insulating the country's homes, and in the long term by moving the UK away from an over-reliance on fossil fuels and "onto clean, green and secure energy". Although world gas prices are expected to increase energy bills, Huhne believed the Government's policies will moderate this rise. Currently the cost of Government policies only makes up 7% of the average household bill. By 2020 DECC estimates annual average household energy bills to be 7% lower than they would be without the mitigating impact of the policies. But the Government's policies are estimated to add 19% onto the average energy bill for businesses with medium-sized energy consumption.

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