The British public supports the transformation of the energy system, and is willing to shoulder some of the costs, but only if energy companies and the government accept their fair share of responsibilities, new research has found.
The study, published by the UK Energy Research Centre (UKERC), is based on a survey of more than 3,000 people and a series of focus groups. Participants were told environmental and social levies accounted for around 7 per cent of their energy bill at the time.
Researchers at Cardiff University found they would support this figure rising to between 9 and 13 per cent.
However, their willingness to pay was dependent on the perception that energy companies and the government – which they considered to have the greatest responsibility for funding the transformation – were also contributing financially and demonstrating genuine commitment to change.
The public was shown to be sceptical in this regard due to concerns over profiteering, transparency and collusion. Energy companies were viewed to be primarily driven by profits, whilst politicians were seen to be too closely connected to the industry.
Nationalisation was supported by 27 per cent of respondents and a further 24 per cent backed heavy regulation.
“The UK Committee on Climate Change estimates that 15 per cent of bills will need to go towards levies by 2030 to meet emissions reductions required by the fifth carbon budget, but only one out of five of those questioned found levies this high acceptable,” said UKERC researcher Christina Demski.
“Increasing the financial burden on the public without addressing concerns about how costs are distributed will likely result in further distrust and jeopardise public support for the energy transition.”
Nick Pidgeon, another UKERC researcher at Cardiff University, said: “Whilst action is already being taken by government and the regulator to address some of the issues highlighted by this research it remains to be seen whether these will be sufficient.
“In some cases, more fundamental action might also be required, for example considering alternate governance structures, including not-for-profit arrangements as with some water utilities.”
Among other things, the report calls for greater transparency over the costs covered by energy bills and innovative thinking over how they be fairly distributed across society.
Perceived responsibility for funding energy system transformation
Source: Paying for energy transitions: public perspectives and acceptability, UKERC