Clean energy, big bills

HOUSEHOLD energy bills are increasing by an average of £23 this year to reflect the rising cost of switching to green energy, says industry regulator Ofgem.

This takes the figure up to £135 on a typical household bill of £1,100 for a standard variable tariff.

Under a scheme known as the Renewables Obligation, energy companies are required to buy a certain proportion of their electricity from renewable sources, which could be a so-called biomass plant burning wood, such as Drax, or wind farms.

These energy supplies are typically more expensive than the cheapest form of power, which most often comes from gasfired power stations. The bill for this scheme, which is passed on to customers through bills, is rising by £700million this year to reach £5.4billion. And a so-called Contracts for Difference scheme pays lowcarbon generators to develop new projects.