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<p>The strike price for Hinkley Point C (HPC) is fixed at £92.50 (2012 prices, rising
with CPI inflation) for each megawatt hour (MWh) generated over the first 35 years
of operation. The strike price is made up of a combination of wholesale market prices
and a levy on consumer energy bills and ensures that consumers will pay no more than
this for electricity from HPC during the contract period. When wholesale prices rise
above the strike price the developer will need to repay the difference. When shared
across consumers (households and businesses), payments under the Contract for Difference
will amount to around £12 of the average household bill over 2026 – 2030 (based on
2012 prices).</p><p> </p><p>This Government is committed to tackling fuel poverty.
In line with our commitment to upgrade fuel poor homes to band C by 2030 we are taking
action to support households in fuel poverty. The Warm Home Discount provides over
2 million low income and vulnerable households each year with a £140 rebate on their
energy bills, including this winter. Since April, 70% of the £640m per year Energy
Company Obligation has been focused on low income households through the Affordable
Warmth part of the scheme. It will upgrade the energy efficiency of over 300,000 homes
per year, tackling the root cause of fuel poverty. We are also safeguarding the competitiveness
of those energy intensive industries particularly exposed to the additional costs
arising from the Contract for Difference by exempting them from a proportion of these
costs. An exemption scheme allows for real-time changes in energy use to be taken
into account and provides certainty to business.</p>
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