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industry & Government news

DIGEST ENERGY BILLS TO

RISE FOR MILLIONS

ACROSS UK AS OFGEM

HIKES PRICE CAP

HYDROGEN ENERGY PROJECTS

WIN SHARE OF £90M

GOVERNMENT FUNDING REFLECTS UNDERLYING ENERGY COSTS
THE WATCHDOG SAYS THE RISE

ENERGY BILLS FOR MILLIONS of UK
households are set to rise after Ofgem
hiked its price cap due to higher
wholesale gas and electricity prices.
The price cap, which was
introduced in January at £1,137, will
rise by £117 for customers on default
tariffs, including standard variable
tariffs on 1 April. The cap for pre-
payment meter customers will also
increase, by £106 to £1,242 per year.
The hike will affect around 15
million households across the UK,
reports The Independent.
The watchdog said the rise in the
cap reflects a “genuine increase in
underlying energy costs rather than
supplier profiteering”.
Gillian Guy, Chief Executive of
Citizens Advice, said: “Unfortunately
price rises were inevitable as the
THE FUNDING INCLUDES SUPPORT FOR AN OFFSHORE WIND PROJECT IN THE HUMBER cost of supplying electricity and gas
to our homes has been increasing. As
HYDROGEN ENERGY PROJECTS smart energy projects. unwelcome as this news is, it’s likely
are among the recipients of new Currently, the vast majority of that prices would be higher still
government funding worth £90 million hydrogen is produced using natural without the cap and there are steps
to reduce emissions from homes and gas, which can only be made low people can take to ease the strain on
heavy industry. carbon by bolting on CO₂ capture their bills.”
A total of £70 million is being technology. Hydrogen can also be
awarded for projects that include the produced using renewable electricity
development of two of Europe’s first via a process known as electrolysis.
hydrogen production plants – one Both options are expensive, and largely The investment supports the
on the banks of the Mersey and the unproven at scale. government’s ambition for a net zero
second planned near Aberdeen – and In its funding announcement, the Britain by 2050.
technology to harness offshore wind off government is backing both horses. Kwasi Kwarteng, Minister for
the Grimbsy coast to power electrolysis Some £7.48 million is going towards the Business, Energy and Clean Growth,
and produce hydrogen. HyNet scheme near Chester, which will said: “Cleaning up emissions from
The investment will also fund projects team natural gas with carbon capture industry and housing is a big challenge,
to trial cutting-edge technologies for and storage to produce low carbon fuel. but today’s £90 million investment will
switching industrial production from It aims to be up and running by 2026. set us on the right path as we develop
fossil fuels to renewables in industries The Acorn scheme in Scotland will clean technologies like hydrogen.
such as cement and glass production, follow a similar model and aims to be “This is an important part of our
reports Energy Live News. operating by 2024. But a further £7.5 world-leading efforts in eliminating
The rest of the funding – £20 million is going towards a scheme known our contribution to climate change by
million – will support projects aimed as the Gigastack, which hopes to use the 2050 while also growing our economy,
at cutting household emissions and UK’s offshore wind plants to produce creating up to two million green collar
bills through nine UK-wide local green hydrogen through electrolysis. jobs across the country by 2030.”

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