Scottish government says renewable energy will save consumers £94 a year

Low carbon initiatives will have a big impact on consumersí energy bills, Scotlandís Department for Energy and Climate Change (DECC) has said.

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The DECC argued that by 2020, policies to reduce Scotlandís carbon footprint will shave £94 off energy bills, a feat that would not have been possible if they hadnít been put in place.

The current drive towards using renewable energy sources will see average household energy bills stand at £1,285 by 2020, a figure which would have climbed up to £1,379 had the government not acted.

The findings were also backed by research by industry regulator Ofgem, which supported the idea that energy bills will be lowered by the governmentís green initiatives.

The news will be welcomed by consumers, many of whom are expecting a rise in energy bills by as much as £50 after Centrica, which owns Scottish Gas, announced an increase in wholesale gas prices.

ìRenewable energy is vital to Scotland and to the rest of the UK. It is essential if we are to keep bills down for ordinary families, boost the economy and meet our climate change targets,î said Fergus Ewing, the energy minister.

ìFigures show bills for gas and electricity rose by £445 between 2004 and 2010, and that two-thirds of this rise was the result of increases in wholesale costs – precisely why we need to invest in our own secure energy supply.î

Scotland has demonstrated its commitment to low carbon initiatives by setting a target to have the equivalent of 100% of electricity demand supplied by renewable energy by 2020.

Figures published earlier this year show that Scotland is already ahead of schedule on its targets, achieving 35% as opposed to 31% of electricity needs came from renewable in 2011.

Renewable incentives add only £15-20 to annual household utility bills in Scotland – a valuable investment in keeping future bills down,î added Mr Ewing

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