Households’ utility bills could rise by £3 billion a year because sudden changes in energy policy have pushed up the cost of building new power stations, MPs have warned.
A string of changes since last year’s election, including axing subsidies for turbines and solar panels and scrapping funding for technology designed to strip emissions from power stations has dented investor confidence, the energy and climate change committee said.
Angus MacNeil, its chairman, said: “Any increase in the cost of project capital will get passed on to consumers through higher bills.” The £3 billion figure is about £11.50 per household.
The committee called on ministers to be clear about how long subsidies would be available. Officials said that the government was “taking action to keep bills as low as possible”.