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The energy bills of UK businesses are set to increase under the Green Deal, with 19 percent being added onto the bill of a company with average energy use by 2020, and by 2030 rising by 28 percent. The figures were revealed during the Annual Energy Statement by Chris Huhne, the Energy and Climate Change secretary.

Household energy bills are set to be seven percent lower by 2020, as a result of the government policies for energy and climate change. Although gas bills are expected to increase, Huhne states that the Green Deal with reduce the amount of the increase. However, the energy bills of UK businesses are going to increase as a result of government policy, like the Carbon Reduction Commitment Energy Efficiency Scheme. According to government data, medium sized businesses with average energy use have already seen bills increase by 18 percent in 2011, caused by low carbon policies.

A number of businesses have already placed the blame for factory closures and staff reduction on UK green policies. The closure of Rio Tinto aluminium factory situated in the North East of England has been blamed on carbon taxes. According to May Tata Steel, green taxes influenced its decision to axe 1500 jobs at its Scunthorpe and Teesside plants. Huhne said:

“It is important that these industries play their part in the transition to a low carbon economy. But it is also important that they remain competitive. That is why we are working with the Department for Business and the Treasury to announce measures before the end of the year to support those energy intensive industries whose competitiveness is most at risk.”

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