FT: UK consumer fuel bills rise to pay for power back-up

A British government scheme to reward energy companies for keeping power plants available for back-up electricity generation will put £2 on the average annual household fuel bill, according to the minister in charge of the measure.

The disclosure to the FT, by Ed Davey, energy secretary, highlights the extent to which government policies designed to keep the UK’s lights on are producing higher energy costs for consumers.

Mr Davey stressed in an interview that the competitive nature of the scheme, in which companies bid for capacity payments in an auction, will minimise the cost to households.  MORE