An independent review into the cost of energy for businesses and consumers was yesterday announced by the UK government.
The review will look at how the energy industry, government and regulatory bodies can keep the cost of energy as low as possible while still meeting the UK’s environmental commitments.
It will examine the whole electricity supply chain, including generation, transition, distribution and supply. The amibition is for UK business and households to have the lowest energy costs in Europe.
Greg Clark, business and energy secretary, said: “All homes and businesses rely on an affordable and secure energy supply… The review will consider how we can take advantage of changes to our power system and new technologies to ensure clean, secure and affordable supplies over the coming decades.”
The review will consider technologies such as electric vehicles, storage, robotics and artificial intelligence.
The government had promised in its Industrial Strategy green paper to launch the review alongside a pledge to create a long-term road map to minimise business costs. The review, led by Dieter Helm, professor of economic policy at Oxford, will report at the end of October 2017.
The news comes a week after British Gas owner Centrica blamed government policy on its decision to increase consumer electricity prices by 12.5% despite falling wholesale costs.
Mark Hodges, CEO of Centrica Consumer, said: “Since our last price rise in November 2013, some costs have risen steadily, among them government policies to subsidise renewable energy, social levies, delivery to customers’ homes, and the nationwide smart metering programme.”
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