Green energy ‘folly will put £600 on bills’: Annual charges to hit living …

May 19, 2013 by  
Filed under Green Energy News

  • Pressure group warns cost could lead to first long-term decline in living standards since the Industrial Revolution

By
Daniel Martin

18:07 EST, 16 May 2013


|

03:07 EST, 17 May 2013


High cost of going green: Britain's green energy 'folly' will cost every family an extra £600 a year by 2020, a report warned last night

High cost of going green: Britain’s green energy ‘folly’ will cost every family an extra £600 a year by 2020, a report warned last night

Britain’s green energy ‘folly’ will cost every family an extra £600 a year by 2020, a report warned last night.

The cost to consumers of green energy subsidies will exceed £16billion a year within seven years, according to a leading industry analyst.

Dr John Constable, director of the Renewable Energy Foundation, warned that the huge burden on taxpayers could lead to the first long-term decline in living standards since the Industrial Revolution.

He estimates that a third of the £600 annual cost will land on energy bills.

The rest will be borne by businesses who will pass on the costs to consumers by charging higher prices for their goods.

In
a report titled Are Green Times Just Around The Corner?, he said:
‘Shifting to current renewables for the bulk of our energy would result
in a reversal of the long-run economic trend since the Industrial
Revolution.

‘More
people would be working for lower wages in the energy sector, energy
costs would rise, the economy would stagnate and there would also be a
significant decline in people’s standard of living.’

He
added: ‘The annual additional cost to consumers will be upwards of
£16billion a year in 2020, which is over 1 per cent of current GDP.

‘One
third of this cost would hit households directly through their
electricity bills, regardless of income, making it an intensely
regressive measure.

‘The
remainder of the cost would be passed through from industrial and
commercial customers and eventually be met by households from increases
in the cost of living. The total impact would be in the order of £600
per household per year, assuming there are 26million households.’

Under EU laws, Britain’s energy
consumption from renewables needs to reach 15 per cent by 2020 – one of
the largest proportional increases in Europe. It is currently around 6
per cent.

Dr Constable said
the Renewables Obligation – the amount customers pay on their fuel bills
to fund green energy – currently costs consumers £2billion a year.

This will have to rise to almost £8billion to meet the targets, he said – costing an average family some £200 extra a year.

The
Carbon Price Floor policy, which is a charge on businesses for every
tonne of carbon dioxide they emit, will cost an additional £1billion.

Experts say this will make  Britain’s firms uncompetitive and force them to pass on costs to consumers.

Additional charges to help fund wind farms are likely to add around £5billion a year, the report claims.

Wind turbines stand close by Mossmorran Ethleyne Plant: Under EU laws, Britain¿s energy consumption from renewables needs to reach 15 per cent by 2020 - one of the largest proportional increases in Europe

Wind turbines stand close by Mossmorran Ethleyne Plant: Under EU laws, Britain¿s energy consumption from renewables needs to reach 15 per cent by 2020 – one of the largest proportional increases in Europe

Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: ‘With many families struggling to make ends meet in these tough economic times, taxpayers will be disgusted at how much of their cash is subsidising green energy.

‘Millions of people are worried about the cost of living, yet the Government’s own policies are making bills even more expensive for households up and down the country.

‘Ministers should be looking to reduce the burdens they are placing on people by scrapping expensive green taxes and subsidies which are unnecessarily pushing up our energy bills.’

Last night a Department of Energy and Climate Change spokesman said: ‘We don’t recognise these numbers. The costs of renewables are coming down.

‘We’ve already cut the subsidies for onshore wind and solar and in future all green technologies will have to compete to deliver the best bang for the buck.

‘Renewable energy is helping support growth through jobs and investment.’

The comments below have not been moderated.

only solar energy will make any sense. mass production of solar panels bring prices down and creat lot of jobs.

balwant singh
,

yorkshire.,
18/5/2013 15:58

“Shifting to current renewables for the bulk of our energy would result in a reversal of the long-run economic trend since the Industrial Revolution.”

For the bulk of our energy.

Except that isn’t on the cards at all, so the costings and conclusions reached are not only suspect, they are deluded.

Facts trump opinion
,

sunderland,
18/5/2013 13:42

It’s great having politicians who don’t “recognise” the stats that stare them in the face.
DECC are a bunch of clowns.

usedtobegreen
,

north yorkshire,
18/5/2013 11:42

Is this why Npower have closed down their website for the last 2 days. It might open on Monday-I hear.

Foxy Face
,

Hitchin, United Kingdom,
18/5/2013 09:48

SIMPLE, VOTE UKIP FOR CHEAPER ENERGY, THE ONLY PARTY WITH A SANE ENERGY POLICY

Nigel
,

Exeter, United Kingdom,
18/5/2013 07:41

Green Energy policy, my ass. this is a share out of the rich with the rich and others whose hands are already in the trough. The people who go out to work and earn an income will pay, as well as their grandchildrens children as the borrowed money required to subsidise us all in the never never land of Etons players, who think this is the way to run a country.

ramblin rose
,

fertiliser,
18/5/2013 05:17

Centaurkind123 – I don’t know what you are going on about, but you are forcing me to believe it. I like it.

LJ
,

Southern England,
18/5/2013 01:05

Beat them at their Own Game, get a log burner in place of your Gas Fire and burn anything you can . 6 KW of heat for nothing !

Carly
,

St. Helens,
17/5/2013 22:08

It’s an ill wind that blows nobody any good! Never a truer word – some people are reaping the benefit but it isn’t the general public!

Mike
,

Coulsdon,
17/5/2013 21:41

Until Yeo MP is kicked out of parliament we will always be forced to pay more. His nose is deeper in the trough than most as he is paid to promote greenery by the green energy industry.

Fairfacts
,

Dorset,
17/5/2013 21:35

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