Brexit regulation bonfire could raise electricity bills £90

Study warns that less efficient imported Chinese appliance could flood the UK market

A post-Brexit bonfire of energy appliance regulations could drive up average annual household electricity bills by £90, a new report has warned.

The study from the Energy and Climate Intelligence Unit (ECIU) released today (24 August) said less efficient Chinese products could flood the UK market following Brexit.

To tie in with next week’s introduction of new EU maximum wattage standards for vacuum cleaners, the ECIU analysed the ramifications of any moves to unpick the EU’s energy efficiency regulations for household appliances and lightbulbs.

The unit carried out an analysis of seven best-selling appliances and light bulbs to examine the impact if all homes opted for some of the less efficient models available on the Chinese market.

The analysis shows that annual electricity consumption would jump by around 3.5% – around half of the total additional generation due to be created by the construction of the Hinkley Point C nuclear power plant.

This increase in consumption would increase average energy bills by more than £90 per annum, virtually wiping out the £100 annual savings that the government hopes to deliver through a price cap, promised in the Conservatives’ election manifesto.

This surge in demand for power would start to reverse the estimated £290 households have saved per annum since 2008 by using more energy efficient appliances.

The ECIU further argued that improvements in energy efficiency could deliver more long-term savings in electricity bills, as opposed to short-term benefits delivered by a price cap.

Loosening efficiency regulations may also undo the “stellar progress” that the UK has achieved on cutting carbon emissions since 1992, according to the report.

The introduction of higher energy efficiency standards has dramatically reduced the electricity consumption of household appliances, it adds

As an example, it says, running a fridge-freezer in 2015 required almost 40% less electricity than 15 years ago before.

Dr Jonathan Marshall, energy analyst at the ECIU, said: “Once outside the EU, Britain will be able to set its own standards on the efficiency of our fridges and hoovers, but heeding calls to throw current standards on a regulation bonfire could leave UK homeowners with an unexpected hike on their bills.”

Commenting on the study’s findings, Michael Grubb, professor of international energy and climate change policy at University College London, said: “The global trend is towards less wasteful appliances and it’s hard to conceive of any circumstances in which it could make sense to use Brexit as an excuse to weaken efficiency standards here.”