Günther Oettinger: “review national subsidy systems for certain energy resources”

Posted: November 14, 2012 by Rog Tallbloke in Energy, government, Legal, Politics

“Your subsidy will be no larger than this”
Günther Oettinger demonstrates he means business with the energy price fixing business

H/T Fenbeagle for this story from Presseurop:

Is Europe preparing cuts in the green energy sector? EU Energy Commmissioner, Günther Oettinger, is about to send “an electric shock from Brussels,” headlines Süddeutsche Zeitung. According to the Munich daily, Oettinger wants “to review national subsidy systems for certain energy resources”.

The commissioner, annoyed by the provincialism of the 27 EU member states, rails at every opportunity against growing nationalism in the electricity sector. And much to the dismay of environmentalists, he particularly disapproves of the unregulated proliferation of green energy subsidies. Member states may soon face a ban on domestic subsidy initiatives, including some that are already well established. For Germany, the law on the promotion of alternative energies, which prompted a boom in wind and solar power as well as a hike in electricity prices in recent years, could be at stake.

According to the Munich daily, the examination of state subsidies will form part of a “prestigious project to provide the EU with an internal energy market” by 2014, which member states have been slow to embrace. The market is supposed to safeguard power supplies everywhere in Europe, and also to lower the cost of energy to consumers.

Comments
  1. He may be shaken by manufacturing industry leaders such as the chairman of the Supervisory Board of Volkswagen, Ferdinand Piëch saying “Germany risks losing industry sectors such as foundries and metals in the medium term due to high energy prices. … We have already noticed at Volkswagen that prices are forcing us to source parts from abroad.” (reported in German http://www.n24.de/news/newsitem_8360918.html)

    And local electricity providers are blowing the whistle on why costs to consumer keep rising. (http://www.volksstimme.de/nachrichten/lokal/halberstadt/965162_Lichtanschalten-wird-bald-teurer.html)

    The take-home message is that electricity costs haven’t risen since 2008 and gas costs are lower, but the prices paid by customers keep rising because of “renewable energy” legislation.

    The newspaper still babbles nonsense like “Use of renewables has already impacted positively on climate protection.”

    Well, they shouldn’t look to their government because Germany’s federal audit has found (http://www.eike-klima-energie.eu/news-cache/neubau-umweltbundesamt-betriebskosten-50-hoeher-als-konventionell/) that the operating costs of running the newly-built “ecological prototype” head office of the Federal Environment Agency (UBA) are not a good model for being ecological. (The UBA video: http://vimeo.com/17118783)

    The costs of maintaining the “innovative systems” in the freshly built headquarters in Dessau are 50% above those of conventional systems; which translates to about €400,000 more, annually. Of other people’s money. To run the offices of a government agency that produces nothing but arrogance, smugness and regulations on everything.

  2. tgmccoy says:

    The newspaper still babbles nonsense like “Use of renewables has already impacted positively on climate protection.” FTA
    Why? because Europe seems to be having cold winters and cool summers?
    How are things in Britain this fall?

  3. Doug Proctor says:

    Euro-politics can wreak havoc with national interests in both ways, causing carbon taxes on all airlines and negating internal promotional subsidies. Unless you agree that your Big Brother should decide everything, wouldn’t it be better to be your own boss/nation?

    Merging finances without identical social desires is a disaster. China learned that 3000 years ago. The Chinese must shake their heads at the Europeans..

  4. Zeke says:

    “The market [a “prestigious project to provide the EU with an internal energy market” by 2014]

    is supposed to safeguard power supplies everywhere in Europe, and also to lower the cost of energy to consumers.”

    Here we go, just like a clock – a government solution to the problems caused by…government solutions.

  5. Greg Goodman says:

    As a recent report showed that the nuclear sector gets about twice as much in subsidies as renewables they need to start there.

  6. Brian H says:

    Greg;
    Now analyse it on a “per MWh” basis. Good luck with that!