The Taxpayers Alliance has released new research today revealing that subsidies for renewable energy are set to more than double in the next five years. And of course, as the government has no money of it’s own, it’s the British people who will be picking up the £5billion+ tab in the form of higher energy bills.
Onshore wind power providers will receive a guaranteed price twice the typical wholesale price, whilst offshore wind will reap incomes at three times the going wholesale rate.
The subsidies were originally put in place to kick start the renewables sector, promoting wind farm building en-masse in order to achieve economies of scale and drive technological advances – and in doing so, it was hoped, drive down prices in the longer term.
But the fact that wind power is going to require billions in subsidies to be viable for the foreseeable future suggests this strategy has failed. It’s little wonder – with the energy firms guaranteed an income no matter what they do, why would they spend money on research or bother with efficiency?
Proof, if proof were needed, that with subsidies in place there is no free market for energy in this country. So why are we surprised when bills only ever go one way?
The question must now be: if investors don’t think wind power is worth investing in, why is the public being forced to continue funding this folly?
Meanwhile, Miliband’s claims that he will reduce energy bills by capping the profits made by the Big Six ring hollow, as the energy policies he put in place during his time as Energy Secretary have been shown to add £74 a year to the average energy bill. In total, green taxes add £112 to the average bill, so Miliband is himself directly responsible for two thirds of your green energy taxes. And it gets worse – as Energy Secretary Miliband had revealed ambitions to add another £125 a year onto energy bills by 2020 under the UK Low Carbon Transition Plan. Nothing he has said since leads us to believe that his mind has been changed on this one.