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Investing in low-carbon technologies and decarbonising the power sector by 2030 could save the country £25 to £45 billion, according to the Committee on Climate Change (CCC) in a new report. But to get there the government must avoid a 'dash for gas' approach and think long term, it warns.  

The government is planning big changes to the power sector. It aims to shift to a low carbon system and maintain energy security - while keeping costs down - through a policy package known as  Electricity Market Reform (EMR). But in a  report out today, the CCC says that the government's lack of clarity about where energy policy is going, and particularly the suggestion that it might also be  expanding the amount of power the country gets from gas, is threatening the entire process.  

If the country is really going to shift to a low-carbon energy system, the committee says the government must think more strategically.

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Parliament's Energy and Climate Change (ECC) committee has told the government to get a move on with monitoring the success of its core energy efficiency policies in a new report, out today.

The ECC committee is concerned the government hasn't worked out what a successful energy efficiency rollout would look like, let alone how to assess whether it meets those criteria. Says the report:

"It is unacceptable that, three years into the life of this parliament, ministers are incapable of defining the actual goals of one of the coalition's flagship policies."

Despite the government's assertion that the  Green Deal is intended as a  long-term project, press attention has focused on  the number of people to sign up  - or not - over its first few months in operation.

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In an interview with the  Sunday Telegraph, Ian McCaig, chief executive of small gas and electricity supplier First Utility, argues that energy bills could overtake mortgage costs "over the next five to 10 years". The Sunday Telegraph headlines the article "Energy bills 'could overtake mortgages in five years'." It's a great headline, but is it right?

The article says:

"Analysis by First Utility shows that UK dual-fuel bills have risen by an average of 8.5pc a year over the last five years to reach current levels of £1,420.

"If they keep rising at the same rate, then by 2025 they would reach £3,761 - higher than current average annual mortgage repayments in places such as Stoke-on-Trent and higher than average repayments in Liverpool by 2029."

There are two things to note here. 

First, the projection cited in the Sunday Telegraph refers to bills in 12 years' time, not five.

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Party like it's 2011

It feels a bit like it's 2011 again. Exchanging different predictions for how much moving to a greener energy system might be going to cost British consumers was all the rage about eighteen months ago. Today, reports in the right wing press claim Britain's green energy "folly" will cost consumers £600 a year by 2020. 

The  Mail and  Telegraph picked up on a press statement from thinktank  Civitas arguing that green energy subsidies will cost every household £600 per annum - or £16 billion in total - by 2020. The figure is based on  calculation by the chief executive of the Renewable Energy Foundation (REF), Dr John Constable. 

How has the figure been created, and how does it compare to DECC's? 

REF has calculated the figure of £16 billion by adding up the following cost estimates for 2020:

• cost of subsidising renewables through the the government's main
• mechanism the  Renewables Obligation (RO) - £8 billion or £307 per household;
• cost of upgrading and maintaining the power network, and managing the variable supply of power from wind - £5 billion, or £192 per household;
• cost of the Carbon Price Floor - £1 billion, or £38 per household. 

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Burning biomass - often from wood - is a key pillar of the government's renewable energy strategy, but there are questions over whether more biomass means higher emissions. A joint government and industry initiative launched yesterday sets out to clarify biomass's role in the UK's drive to meet its energy needs while cutting carbon. 

The initiative is coordinated by  Carbon Connect which brings together MPs, peers and industry. The group's report will aim to outline "the role of renewables and how they tie into security of supply", according to former energy minister and Carbon Connect co-chair Charles Hendry. Here's a few key issues it will need to address.

Biomass emissions controversy

The government must reduce greenhouse gas emissions by  80 per cent by 2050 by law.  

It's hard to know whether biomass will help the UK cut carbon, however. Biomass generation  can be carbon negative, in theory. But it depends on what kind of biomass is used and where it comes from. 

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Author:Rama

The European Commission is investigating oil companies for possible Libor-like offences related to price reporting in the transport petrol market. Which is fine if you know what any of this stuff means. For those who don't, here's a guide to what's going on, and what could happen next.

Who's involved

The  FT  broke the story on Monday that the European Commission has raided the offices of oil companies BP, Shell and Statoil for misreporting petrol prices to Platts, an information provider which reports the 'benchmark price' for commodities like petrol - and whose offices were also raided.

Platts publishes information on commodity market such as food, energy and metals. It provides benchmark prices on these commodities, which underpin trading activity and can ultimately affect prices consumers pay on goods like petrol at the pump.

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Government  figures released today show four million households in fuel poverty, slightly fewer than a year before. Three things in particular affect the numbers: energy prices, household incomes and where people live.

The Department of Energy and Climate Change (DECC) releases annual figures on fuel poverty. A household is considered in fuel poverty if it spends more than 10 per cent of its income on fuel costs. But this measure has been criticised for failing to recognise households' different energy needs so the government now also measures fuel poverty on the basis of how much they have to spend for an 'adequate' standard of living. 

Energy prices affect fuel poverty

Fuel prices have been steadily increasing over the last ten years and are "typically been the most influential factor in movements in fuel poverty", according to the report.

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As the energy minister Michael Fallon encourages companies to explore for shale gas, concerns remain that the extraction process is safe. We asked at what so-called fracking will do to the local environment, and what regulation is needed.

Several official reports - from Parliament's  Energy and Climate Change (ECC) Committee, the  International Energy Agency (IEA) and the  Department for Energy and Climate Change (DECC) appear to agree that the local impacts of shale gas extraction are manageable.

And the government's now on the same page. In front of a Parliamentary Committee today, new energy minister Michael Fallon said the government is "creating the right framework to accelerate shale gas development in a responsible way", adding that it is now up to oil and gas companies to come forward with plans to explore the country's shale gas potential.

Despite the reassurances, many communities are worried. Here's a quick and dirty run down of the main issues, with a few of the caveats.

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It's smart meter day, and as the Energy and Climate Change (ECC) Committee devotes itself to scrutinising the government's  £12 billion energy management scheme, the little LED-lit boxes will doubtless form the go-to topic of watercooler conversation all over the UK.

Worried you won't have anything to say? Here are five smart meter snippets to share with all your friends.

1. Smart meters help reduce emissions

Smart meters give people detailed information about how much energy they use and when. The government aims for all homes and small businesses to have  smart meters by 2020. 

At the moment, gas plants have to be powered up when energy demand peaks - normally when everyone gets up in the morning and makes a cup of tea and again when everyone gets home, puts the washing on, and settles down to watch Hollyoaks.

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The prospect of being in power when the lights go out is a politician's worst nightmare - and one that outgoing chief of energy company SSE, Ian Marchant, recently argued could come true in the next few years. In a  BBC interview Marchant explains his comments - and perspective on UK energy policy - in a bit more detail. 

Last month, Marchant said that the government has underestimated the risks of a crunch in power supply over the next few years - and there is a "  very real risk" of the lights going out as a result. 

It's not the only controversy the company is involved in. SSE was recently fined  £10.5 million by energy regulator Ofgem for misselling its deals to consumers. Despite a grovelling apology on the SSE homepage, Marchant argues in the interview that " misunderstanding" is behind most of the misselling. But what about the rest of Marchant's views? 

A crunch in UK power supply

Both Marchant and the head of energy regulator Ofgem, Alistair Buchanan, recently warned that the country could face a  squeeze in its reserve power supply as the older power stations close down. 

At the moment the country had more power stations than it needs to supply its demand for electricity, but that may change soon. In fact, according to Marchant, the oversupply means some plants are shutting down because "the generation that we've got isn't making any money".  In addition, old coal power stations are now being closed as a result of  EU regulations aimed at reducing pollution. 

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