Nov. 29 (Bloomberg) — The U.K. government will propose
measures to encourage homes and industry to cut power use in a
bid to curb bills and reduce the need for new plants.
The proposals, published as the government introduces
legislation overhauling the electricity market today, include
offering premium payments for each kilowatt-hour of power saved
through measures such as efficient lighting, the Department of
Energy and Climate Change said today in a statement.
Britain’s government wants consumers and industry to cut
power use to lower emissions and keep a lid on bills after
companies including Centrica Plc’s British Gas and EDF Energy
Plc boosted charges. Cutting demand by 10 percent may save
about 4 billion pounds ($6.4 billion) in 2030 and reduce demand
by the equivalent power of five power stations, DECC said.
“We need to make our energy supply fit for the 21st
century, and in a world of rising gas prices we must power our
homes and businesses in a much more efficient way,” Energy
Secretary Ed Davey said today in the statement.
The measures include financial incentives to replace less
efficient technologies with newer equipment. The government will
also consult on an “energy supplier obligation” to ensure
suppliers reach a specific target of electricity demand
reduction in the non-domestic sector.
Among the proposals are plans to incorporate demand
reduction in the capacity market, a proposal introduced in the
Energy Bill to pay generators for staying online to ensure
security of supply. The Electricity Demand Reduction
consultation, to be published at 11:30 a.m. today, will assess
if people can participate in the capacity market by committing
to reduce power use, lowering the electricity generators need to
produce.
To contact the reporter on this story:
Sally Bakewell in London at
sbakewell1@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net
