Press release

£300 extra energy costs for UK households by 2020 - new report

17 October 2011

**Interviews, consumer case studies, photos and video of stunt available from press office**

Households in the UK could face extra costs of around £300 per year as the bill for using fossil fuels to generate electricity spirals ever higher, a new report from Friends of the Earth reveals today [Monday 17 October 2011] as it launches a new campaign for energy we can all afford and a public inquiry into the Big Six energy companies.

The report comes on the day that Energy Secretary Chris Huhne meets with the Big Six energy companies, Ofgem and consumer groups in an emergency summit to discuss action to cut fuel bills.

'The Dirty Half Dozen' report shows that if the Big Six energy companies - including household names like British Gas and E.ON - forge ahead with plans to build new fossil fuel power plants and abandon plans for new renewable energy, the nation faces an annual bill of £8 billion to £13 billion extra for our coal and gas by 2020 - with producers likely to pass the cost on to hard-pressed consumers and businesses.

To highlight the findings, published to mark the launch of its Final Demand campaign, Friends of the Earth is sending spoof representatives of the Big Six energy companies to iconic landmarks around London to thank consumers with freebies and gushing appreciation for soaring profits through energy bills now averaging £1,300 a year.  

Friends of the Earth is also warning that consumers are being misled about the true cause of bill hikes, with some think tanks and commentators blaming 'green taxes' when in fact the rocketing price of gas is to blame - and investing in clean power and cutting energy waste is the only way to bring bills down in the long run.

The campaigning charity has welcomed the recent announcement by SSE to auction all of its power on the open market as a step in the right direction, but warns that all energy companies must invest massively in renewables rather than fossil fuels to give consumers a better deal. 

Friends of the Earth's Final Demand campaign is asking people to sign its petition calling on David Cameron to set up a public inquiry into the Big Six at www.foe.co.uk/finaldemand.

Friends of the Earth's Executive Director Andy Atkins said:

"The big energy companies have a lot to be thankful for - surging profits, bumper executive payouts and a Government that's bending over backwards to allow them to keep Britain addicted to fossil fuels.

"The Big Six are tipping the UK's energy system in favour of expensive gas while neglecting investment in clean energy and slashing energy waste which would give consumers a better deal in the long run.

"David Cameron must urgently set up a public inquiry into the power of the Big Six energy companies - ending their stranglehold over the UK's energy system will be good for consumers, good for business and good for the planet."

ENDS

Notes to editors:

1. Friends of the Earth spokespeople, including Executive Director Andy Atkins, Director of Policy and Campaigns Craig Bennett and energy campaigners Paul Steedman and Donna Hume, are available for interview. Please contact the press office on 020 7566 1649 to arrange an interview or background chat.

2.   Case studies are available from the Friends of the Earth press office - please call 0207 566 1649 for details. They include:

• A family that has installed solar panels because of rising energy prices and has seen a huge reduction in bills;
• A retired pensioner who has changed to a green energy tariff because he's had enough of the big energy suppliers;
• A thirty-something writer who is sick of energy price rises and the dodgy behaviour of the big energy companies and wants Government to act;
• The owner of a small solar panel installation business who's created new jobs because of Government support for green energy, and wants to see it continue;
• The CEO of a green energy company already supplying tens of thousands of customers and looking for the opportunity to do more to take Britain towards a green future.     

3.    A full copy of the report is available on request from the press office - please call 020 7566 1649.

4.    A full summary of the calculations used to arrive at the figure quoted in the report can be provided on request. Friends of the Earth has arrived at the figure of £308 per household by calculating the quantity and cost of all gas and coal used for generating electricity in 2020 compared to a 2010 baseline:

• Based on the Department for Energy and Climate Change (DECC)'s projections for the fuel mix for generating electricity in 2020, and a range of price predictions for the cost of gas.
• Assuming a significant number of coal and nuclear power stations will close between now and 2020, as Government and industry thinks is likely;
• Assuming that we do not build any more renewables, but instead fill the gap by increasing our use of gas; if the UK abandons aspirations for new renewable energy.

5. Friends of the Earth research shows that a green energy revolution is needed to stabilise energy bills in the long run. For information see: http://www.foe.co.uk/resource/press_releases/emr_12072011.html

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust