Green Madness: Climate Policies To Add Up To 40% To Cost Of Household Electricity

  • Date: 14/12/14
  • Robert Mendick, The Sunday Telegraph

Official figures – initially withheld by ministers – show steep rises in the price of electricity by the end of the decade to pay for the Government’s policies to tackle climate change

The cost of household electricity will rise by as much as 40 per cent by the end of the decade because of the Government’s green energy policies.
Official figures — initially withheld by ministers — show an alarming increase in the price of electricity caused by generous subsidies to wind farms as well as other policies.

An average household is expected to pay as much as £250 more for electricity – mainly through consumer subsidies – to pay for the Government’s green energy schemes, while an electrically heated house could be as much as £440 a year worse off.

And by 2030, when thousands of planned offshore wind turbines are finally operating, the burden will be even greater, the numbers show. The average household could be paying an extra 60 per cent for electricity – equivalent to £350 more a year.

Medium-sized businesses will be hit very hard, according to the new data. On average such companies will see electricity bills rise by more than £500,000 a year – a cost likely to be passed on to consumers.

The figures were made public last week by the Department of Energy and Climate Change (DECC) following a Freedom of Information request by campaigners.

The information was initially prepared for an official DECC report – released at the beginning of November – which claimed that the average household fuel bill had fallen by £90 thanks to the “impact of DECC policies”.

But the tables showing the actual cost of green policies on future electricity prices for households and businesses in 2020 and 2030 were kept secret because they were “thought to be confusing”.

Their release now will embarrass ministers, who are accused of presiding over an expensive consumer subsidy system.

The Government’s climate change policies include complex consumer subsidies for wind and solar farms, as well as grants for energy efficiency measures such as loft and wall insulation, available to certain households.

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