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The Liberal Democrats are calling for all new buildings to include microgeneration such as Solar Panels or Wind Turbines - or to be part of a district combined Heat and Power scheme.
Liberal Democrat Shadow Environment Secretary, Chris Huhne MP, said: "Our current electricity system is so inefficient that two-thirds of the energy in the fuel is wasted through losses in production and transmission even before it gets used at homes and workplaces."
The Lib Dem local power switch could save an average household £150 per year off their bills.
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