Price and bill impacts of policies

Energy and climate change policies will have an impact on households and businesses in the UK. The impact will be through changes in prices for goods and services, and changing patterns of consumption – in particular for energy.

To better understand these impacts, DECC regularly produces and publishes an assessment of the impact of energy and climate change policies on gas and electricity prices and bills. The latest analysis, published alongside the Annual Energy Statement in July 2010, can be found here:

This analysis is not a complete view of the impacts of energy and climate change policies on consumers. Energy and climate change policies are likely to have other costs and benefits that will impact energy consumers outside their electricity and gas bills, for example, through costs of appliances due to changes in energy efficiency standards.

Only those policies already in place or that have been planned to a sufficient degree of detail (i.e. with quantified estimates of costs and benefits) have been included in the modelling.

On 29 July 2011, DECC published provisional results on the estimated impacts of energy and climate change policies on the average gas and electricity prices and bills faced by large energy intensive users, which can be found here:

In addition to information on the price and bill impacts of energy and climate change policies for these users, this document explains some of the underlying assumptions underpinning the analysis. Final updated analysis will be published with analysis on household and medium-sized non-domestic energy users’ impacts later this year alongside the Annual Energy Statement.

An analysis of the impact of energy and climate change policies on gas and electricity prices and bills was also published in July 2009, in Chapter 5 of the Analytical Annex of the Low Carbon Transition Plan.

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