Leak reveals energy costs set to soar due to government policies

The government is 'incompetent' and 'in a shambles' over its energy policies following a leak revealing possible soaring energy prices, according to the opposition.

Energy minister, Chris Huhne, has repeatedly criticised energy companies for increasing their prices, but has appeared powerless to prevent them.

Now according to documents leaked to the Telegraph energy prices will leap a further £300 because of green efficiency measures.

The note claims the coalition government’s policies on energy prices will over time become ‘significantly greater’.

The note highlights four carbon pricing, the Energy Company Obligation, Electricity Market Reform package and the Renewables Obligation as the most likely to impact on prices.

It also reveals the Department for Energy and Climate Change (DECC) predicts government policies adding 30% to energy bills by 2020 ‘compared to a world without policies’ through its mid-case gas price scenario.

Labour’s shadow energy minister, Meg Hillier, said: “This high-level leak reveals incompetence at the heart of government over energy prices and climate change.

“The prime minister’s advisers are knifing Chris Huhne’s policies.

“All the while, people’s energy bills are set to soar this winter, making life harder for families whose living standards are being squeezed, while ministers sit on their hands. It’s a shambles.”

Luke Walsh

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