Why energy bills will be one of the big issues of the autumn

One of the big political issues of the autumn is going to be energy bills. Among Tory MPs, there’s mounting concern that the coalition’s green policies are driving up the price of energy rather than helping to bring it down. They fear that this is both acting as a drag on the economy and adding to the squeeze on family budgets.

So, today’s story in The Times about how a carbon trading scheme—started under the last government—has led to households being charged, on average, £120 more than they should have been in utility bills is going to turn up the political heat on this subject. The paper alleges that:

“Energy companies such as Scottish Power, EDF Energy and Centrica, the owner of British Gas, have pocketed about £9 billion in free windfall profits by manipulating a carbon trading scheme. The extra costs have come when energy prices are at a record high, but, according to the climate change group Sandbag, the total carbon emissions saved by the scheme are roughly equivalent to every person in Europe replacing two old incandescent lightbulbs with energy-efficient alternatives, costing about £3 each.