World News - Government wants energy prices held

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  • xman
    Admin
    • Sep 2006
    • 24007

    World News - Government wants energy prices held

    divdiv class=story-body readability=38 span class=story-date#13; span class=date28 November 2013/span#13;span class=time-textLast updated at /spanspan class=time17:58 ET/span#13; #13;/span#13;#13; #13;#13;#13; #13; #13; span class=byline byline-photo img src=http://news.bbcimg.co.uk/media/images/70232000/jpg/_70232853_70232852.jpg alt=John Moylan/span class=byline-nameBy John Moylan/span span class=byline-titleIndustry correspondent, BBC News/span /span #13; p class=introduction id=story_continues_1The government is asking the big six energy firms to hold prices until the middle of 2015, barring any major increase in wholesale fuel costs./p#13; pIndustry sources have told the BBC the government wants to avoid another round of price rises that could be blamed on government green levies./p#13; pThe government wants the commitment as part of a wider deal with firms that could cut annual bills by around £50. /p#13; pLabour has promised to freeze energy prices for 20 months if it is elected. /p#13; pThe government has described that as a con, saying that governments in general cannot control the international price of fuel./p#13; pBut this move, if agreed, could keep tariffs on hold for at least 18 months, assuming there was no major rise in wholesale prices./p#13; pThat could ensure there was no increase in energy bills ahead of the next election. /p#13; div class=story-feature narrow#13; a class=hidden href=#story_continues_2Continue reading the main story/a h2 class=quote“spanStart Quote/span/h2#13;blockquote readability=2p class=first-childThis is deferring costs, not getting rid of them”/p/blockquote#13;span class=endquoteEnd Quote/span#13; span class=quote-creditIndustry source/span#13; #13;#13; /divspan class=cross-head'Deferring costs'/span#13; p id=story_continues_2A senior figure at one of the big six suppliers, who did not want to be named, has told the BBC that he wanted to make the commitment./p#13; pWe want to make it happen, but we need predictability on costs, he said./p#13; pHe said the key was to change the Energy Company Obligation (ECO) scheme, which requires the firms to deliver energy efficiency measures to homes. /p#13; pIf they can resolve the issues around ECO, that takes the gun away from our head, he added./p#13; pBut another industry source warned that making such a commitment would be impossible: We can't make that commitment while our costs are still increasing. /p#13; pHe cited several factors linked to government policy, including the Carbon Price Floor and the Renewables Obligation, which he said would drive costs higher in the years ahead. /p#13; pThe government is seeking to spread the cost of the ECO scheme from a href=/news/uk-politics-25132843 title=Ministers plot £50 energy bill cutthe current 27 months to four years/a. /p#13; pThe source said: This is deferring costs, not getting rid of them./p#13; pThe bus has already left the station, he added. /p#13; pThe government is also looking at the cost of transmitting energy to our homes. This makes up 23% of an annual dual fuel bill./p#13; pAccording to the industry regulator Ofgem, electricity distribution costs will add £15 to an average bill over the next year, but flatten out thereafter. /p#13; pIndustry sources say the government wants that cost spread over a longer period. /p#13; pSuch a move could potentially knock £5 annually off bills./p#13; /div/divbrbrcentera href=http://www.wizardrss.comPowered By WizardRSS.com/a | a href=http://www.wizardrss.comFull Text RSS Feed/a | a href=http://www.amazon.com/RFID-Blocking-Cards-Identity-Protector/dp/B00CJHZLEWRFID/a | a href=http://www.wpzonbuilder.comAmazon Affiliate/a/center
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