Think tank calls for end to green power subsidies

Think tank calls for end to green power subsidies

An influential think tank has said that post-Brexit Britain should slash green subsidies to make the country’s energy prices the cheapest in Europe.

The report by Civitas found that prices for industrial electricity have doubled since 2004 through a rush to renewables and a “process of economic self-harm”.

Glyn Gaskarth, the report’s author said that the country should ‘weaponise’ energy policy in order to keep prices “as low as possible”.

“The UK needs to rip up its existing energy policy and replace it with a new policy that delivers low and stable energy prices for all users.” he said.

The findings by Civitas follow a damning assessment by the Public Accounts Committee (PAC) which found that the Government’s green levies would add £110 to households bills by 2020.

“The Government expects the cost of levies to continue to bust the budget – meaning customers will pay more than expected.” PAC Chair Meg Hillier said.

2 Comments

  1. Vincent Booth

    The Feed Tariff Scheme introduced as part of the Energy Act in 2008 and developed by the coalition and Tory government in 2010 has lead to the following situation.
    An OFGEM report for 2015 indicated that the average electricity price was 15.71 pence per KWh from all sources. .
    In 2015/16 the total payments to the owners of solar installations (as seen on houses and factories, small windfarms, and other renewables) under FITs was £1.333 billion, these owners got their electricity free and were also paid by us (including low wage earners and pensioners), an average of 20 pence per kWh generated, (Tax free, RPI linked and guaranteed for at least 20 years). These are legal contracts and our suppliers such as British Gas and Power Gen etc are mandated to buy this energy from the renewable generators.
    But of more importance is the amount of energy these schemes supplied back to the grid for all of us to use, this was 1.118 GWh, which works out at £1.19 per kWh, a very high price paid by us the public.

  2. Pingback: £450m in green subsidies spent on burning wood pellets at Drax

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