The UK saved almost £250 million in fuel costs last year by generating its energy more efficiently.

That’s equivalent to the gas bills of more than 350,000 homes, according to a new government report.

It also stated there was an increase in combined heat and power (CHP) plants in 2014 with 54 new projects.

The Association for Decentralised Energy (ADE) however added some industrial sectors didn’t receive new investment and others saw “significant” reductions in CHP capacity and generation.

Tim Rotheray, ADE Director said: “The opportunity is much greater. There are hundreds more commercial and industrial sites that could benefit from generating their own heat and power locally by putting the right policy framework in place.”

Earlier this week the government announced it would stop funding the Green Deal, its energy efficiency scheme.

Anh Tuan