Gas price hike 'should propel Government towards green power'

Published on Saturday 19 July 2008 19:36

THE Government must raise its commitment to green power as gas prices look set to soar, according to the renewable energy industry's chief representative body.

Andrew Cooper, head of on-site renewables at the Renewable Energy Association, said more people would turn to renewable energy as an independent report warned that gas prices could rise by 70%. But he said the Government needed to help prepare the industry.

"What we need from the Government is a commitment to help the industry grow and move forward," said Cooper.

"What we don't want to do is wait until prices are so high that everybody's clamouring for renewable energy when the industry has not been well-developed and supported to grow."

Cooper said renewable energy sources, such as solar panels, heat pumps and wood pellets, could help people combat increasing living costs. "Renewable energy is going to become more cost effective compared to fossil fuels. The more people start producing their own heat and power, the more they will feel they have control over the problem. "

However, Cooper said people needed help with the installation costs of renewable energy sources. He said putting in solar electricity panels cost in the region of 10,000, but suggested that Government grants to help spread this cost could help.

He pointed to a scheme in the Kirklees district of West Yorkshire, where he is a councillor, in which householders do not have to pay for renewable energy products until they sell their property.

And, in Germany, Cooper said, householders are paid for the energy they produce.

The report, commissioned from analysts Eclipse Energy by Centrica, which owns British Gas, warned that gas prices would remain high for the foreseeable future. It predicted an annual domestic gas bill could cost more than 1,000 within a few years.

Gas and electricity watchdog Energywatch called on the Government to act now to reduce the pressure on wholesale gas prices and force the industry to deliver affordable energy for Britain's poorest consumers.

Chief executive Allan Asher said: "The Government is right to say that the link to oil is a cause of the problems but wrong to say there is nothing that can be done. Government can and should act in those areas where it can have an effect. Action to cut the price link between gas and oil, action to improve the working of the domestic market, action to help those who can least afford to keep warm."

Energy Minister Malcolm Wicks said predictions of a 70% rise in gas bills were "mere speculation", though he accepted bills were likely to rise.