One third of all households in the UK will be in fuel poverty by 2030 unless the Government acts to encourage new nuclear. This is according to the think tank the Centre for Policy Studies, whose new report ‘The Atomic Clock: How the Coalition is gambling with Britain’s energy policy’,has criticised the increased costs of the Coaltion’s policies.
According to energy analyst Tony Lodge the UK is facing an energy gap due to delays to new nuclear planning as well as unforgiving policies which fail to encourage new investment. He says the resulting increased reliance on imported gas will raise energy prices for consumers and businesses.
Mr Lodge said: “Britain risks becoming yet more dependent on foreign gas and unmanageable renewable energy to generate electricity. Consequently, Britain’s 26 million households, who spend around £20 billion a year on energy will face higher bills at a time of falling household income.”
The CPS are demanding the Government re-examines its Carbon Price Floor strategy so that it encourages new nuclear, allows the use of more coal and keeps energy prices lower.
Tim Knox, Director of the Centre for Policy Studies said: “Low cost, reliable and abundant energy is essential to the future competitiveness of British industry. It is incoherent to impose green taxes on manufacturers and then – as happened in the Autumn Statement – give money back in the form of subsidies.”