Are green energy subsidies a load of bunkum?

12 June 2014

wind-turbines Ed Davey is being shouted at by Which!!! They're telling him that his proposed subsidy scheme will encourage the building of higher-cost energy projects (offshore wind farms and the like) that might not actually deliver value for money.

The rest of the country meanwhile, is collectively rolling their eyes and handing out degrees for stating the bloody obvious.

Either way, Which!!! has written to the secretary of state for energy and climate change saying that his plans for electricity market reform "could result in expensive generation projects being prioritised over cheaper, more cost-effective options".

Of course, Which!!! are insistent that they support green initiatives, but doesn't want to see the Government's Contract for Difference (CfD) being rolled out in a way that is not only flawed, but needlessly expensive.

"It is vital that any measure that adds costs to consumers' bills is closely scrutinised at a time when energy prices are the top financial concern for consumers. Whilst there has been a lot of welcome attention given to tackling the immediate cost of energy bills, Which!!! believes that more attention needs to be done to address energy costs in the long term," said Richard Lloyd, Which!!! executive director.

He added that: "The absence of full competition from the Contracts for Difference process at the outset risks priority being given to investment that may not deliver value for money for customers."

"In our view it is not appropriate to shield offshore wind developers from competitive cost pressures … there are a wide range of costs across offshore wind projects but accurate cost information is hard to come by. Allocating subsidy competitively is the best way of revealing this information."

TOPICS:   Utilities

1 comment

  • jim
    couldnt you have put the word Which!!! a few more times? im sure u could :)

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