Revamp 'could see heating bills rise'
Energy and heating bills could rise as a result of a market revamp planned by the Government - a prospect not dismissed by Business Secretary Vince Cable.
Increases to bills, a drop in competition and investors being deterred could all result from the draft Energy Bill, the Commons Energy and Climate Change Select Committee has warned.
Under the Bill, energy companies would be given a guaranteed price for the low-carbon energy they produce through a system of long-term contracts.
But Mr Cable said that the Government would not budge from its "basic economic policy" of deficit reduction despite calls for tax cuts and borrowing to boost the economy.
When asked if the Bill could see energy bills rise, he said: "There is bound to be an element when you get new industries established that it has to be supported by some of the more traditional fuel.
"So yes of course there is an additional element of subsidy, but what we are trying to ensure is that these new technologies are subsidised very quickly so that their costs fall and that subsidy element disappears."
Copyright Press Association 2012
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