Following agreements to peg and reduce subsidies everyone was left in a state of shock when The Rt. Hon. Michael Fallon MP., the new Energy Minister, announced rises in subsidies through a strike price agreement. That he painted this as a 25% drop due to reducing the time scale from twenty five to twenty years suggests he thinks us all fools. At current rises in fuel bills most of us, excepting those MPs with inflation beating pay rises, will have frozen to death long before such time as the subsidies finish. The TRUE fact remains that most wind farms will be re-powered, the euphemistic description of replacing worn out machinery with new, well before the twenty years wherein new twenty year contracts will no doubt be agreed. Well, either he takes us for total dimwits or he has been handbagged by the DECC to agree a policy of which he has little understanding. Either way the Cabinet reneged on it’s agreement with their backbenchers to reduce subsidies and as such should collectively hang their heads in shame. In truth, it may be that the penny has just dropped that unless they pull the digit out, by preference sack the whole of the DECC, drop the subsidies, and create a proper energy policy by first keeping coal and nuclear on line until new replacements are operational, the lights really are going to go out. Wind is a waste of space that has already saddled this country with a greater debt than believable. It’s intermittency and reliance on alternative energy alone make it unsuitable let alone it’s capital costs and financing from overseas suppliers. A job creation scheme for Germany, Denmark and Spain that the man on the Clapham Omnibus is expected to pay for and our rural residents have to suffer from.
Effectively Npower suggests that energy bills could rise by up to £250 per annum by 2020. This is a complicated issue as Scottish Hydro already suggests that renewable energy and carbon savings charges add 14% to bills and British Gas suggest as much as 19%. On that basis with a base cost of £1247 today those charges are already between £174 and £236 and would rise, excluding inflation to £208 and £282 by 2020. This of course is based on historic figures and fails to take into account the new strike prices for wind, nuclear and even gas. Taking a worse case scenario we could be facing energy costs for a standard house by 2020 of some £3464 with government imposed costs of £484 to £658 per annum. An interesting addendum to these predictions could be that contrary to Centrica’s take on Shale Gas, imports from the US will hold down UK shale gas prices to US levels, making wind and wave obsolete at a stroke and challenging nuclear to construct power stations not reliant on Government handouts.
In the mean time we ask you to write to Michael Fallon and advise him of his error! The easy way is to click the link and use the Together Against Wind web site to do all the hard work. Just enter your email and postcode at the bottom of the page and follow the instructions. You should get a response from the DECC shortly.