Consumers warned to expect energy bill hikes
A committee of MPs has warned that cuts to government subsidies for renewable energy could lumber UK householders with higher energy bills in the future.
The Energy and Climate Change Committee criticised the government for inconsistency in its support of green energy projects and said that the uncertainty had discouraged private investors from supporting renewable power in the UK.
"Billions of pounds are needed to replace ageing energy infrastructure, maintain secure energy supplies and meet climate change targets," said committee chair Angus MacNeil. "The government made a number of sudden and unexpected changes to policy. This has spooked investors."
Mr MacNeil warned that any further increases in capital costs would "inevitably" result in higher utility bills for consumers.
A spokesperson for the Department of Energy and Climate Change insisted that the government was "taking action to keep bills as low as possible to protect consumers".