Environment policy reforms to add £300 to energy bills

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The Prime Minister has been warned that government plans to get people to reduce their bills through efficiency measures are likely to fail.

Mr Cameron’s senior energy adviser pours scorn on claims by Chris Huhne, the Energy Secretary, that rises in gas and oil prices will be offset by people using less power. A note by the adviser describes his department’s analysis as “unconvincing”.

It warns that the Government’s move to increased nuclear power, wind turbines and other measures will add 30 per cent to the average family’s annual energy bill of £1,069 by the end of the decade.

Mr Cameron is said to be “very worried” about the figures in the paper, written by Ben Moxham, his senior energy adviser who was recently brought in to beef up the Prime Minister’s policy unit.

The private note, seen by The Daily Telegraph, is titled “Impact of our energy and climate policies on consumer energy bills”. It was sent to Mr Cameron and offers a blunt assessment of how Coalition energy plans, in particular a series of green policies, will affect householders.

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