New plans for energy supply estimates to save UK customers and businesses up to £40 billion by 2050
24th July 2017 16:02 - Utilities
New plans for energy supply estimates to save UK customers and businesses up to £40 billion by 2050: the UK Government are developing plans to alter the way in which energy is stored and distributed to consumers in order to keep costs down.
Following from January’s ‘Industrial Strategy’ plan, details include ways in which the Government can best work with energy regulator, Ofgem, to help markets work efficiently through the development of decarbonisation.
Despite the delay of the UK Green Growth Plan, (stemmed from the Industrial Strategy plan), the Government’s top priorities with regards to energy supply are as followed:
· Affordability of energy for households and businesses
· Securing industrial opportunities for the UK economy of energy innovation
Furthermore, in order to strengthen the UK’s economy and to deliver affordable energy and clean growth, the Government plan to tackle the current trio of dilemmas: meeting climate change targets, guaranteeing security of energy supply and minimising energy costs.
Recent reports reveal that the ‘battery revolution’ is set to save consumers £17billion to £40billion by 2050, yet those that use solar energy will be the first to see the reduction of costs.
Currently, 3% of business expenditure contributes to energy bills; while other businesses in sectors such as chemicals, steel and ceramics, pay over 10%. However, changes to the energy sector is predicted to limit costs on energy bills by 80%, with plans to update and add new frameworks to the UK’s current energy system and sell it to the National Grid.
This development is set to provide storage of electricity and demand of flexibility, which could add benefits to consumers and their electricity system, as at the moment, the UK’s electricity costs is out of line with other European countries due to high wholesale prices and network costs.
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