Douglas Carswell: Frozen out from cheaper bills by #greencrap energy policy

Posted: December 17, 2014 by tallbloke in Energy, government, Incompetence
Tags: ,

From the Yorkshire Post, UKIP MP Doug Carswell on the reasons behind big fuel bike price hikes:

energybillGOVERNMENT energy policy, put in place by Ministers of all three established parties, is pricing people out of being able to heat their own homes.

The cosy consensus over energy policy here in Westminster is squeezing living standards across the country. According to the index of domestic fuel and light prices, helpfully reproduced by the House of Commons Library, prices have changed fairly dramatically over the past 40 years.

From the early 1980s through to the early noughties, there was a slow, gradual fall in prices; it was a 20-year period of customers getting what they tend to get in a free market, capitalist economy – more for less.

Suddenly and dramatically, that picture changed in the early noughties. Since then we have seen a rapid rise in prices – sharper, indeed, than that experienced during either of the two oil shocks of the 1970s.

Dual-fuel household energy bills in 2014 for the average home are forecast to be almost £1,400. That represents a real-terms price increase of over 50 per cent in a decade during which average household incomes stagnated.

Why have energy prices gone up so rapidly? Is it because there is not enough of the stuff? Are we perhaps running out of gas?

Not at all: wholesale energy costs have actually been falling as a proportion of the total. According to Ofgem, for every £1 we pay on domestic fuel bills, only about 44p goes to meet the wholesale price.

Energy prices are not going up because of a shortage of energy or because of beastly energy companies; public policy is driving up the cost of household energy bills. The renewable obligation requires energy companies to increase the proportion of energy they generate from supposedly renewable sources.

That basically means that we have to pay more in order to subsidise the construction of wind turbines.

According to data that the Department for Energy and Climate Change recently put out following a Freedom of Information request, low-carbon policies will result in a 50 per cent increase in energy costs for small business in the central fossil fuel price scenario for 2020.

In the low fossil fuel price scenario for 2020, low-carbon policies will cause a 77 per cent increase for medium-sized companies, which would rise to 114 per cent by 2030. Whitehall officials have gambled on the price and cost of fossil fuel and have got it spectacularly wrong.

Read the rest here

Comments
  1. M Simon says:

    Why aren’t you guys screaming? And changing government?

  2. thefordprefect says:

    government figures from offgen seem to show otherwise. rebates etc reduce the effect

    using domestic figures you get this plot

    which shows electricity falling behind other fuels.

    [Reply] The dashed blue line is domestic fuels. Gas is about as much above as electricity is below. Prices have risen stronly since turbine building an subsidy really took off in mid 2000’s

  3. A C Osborn says:

    Cameron on Prime Minister’s Question Time avoided answering a Question on Cancelling the Climate Change Act and just re-iterated how well the Government was doing on Green Initiatives instead.

  4. thefordprefect says:

    Is mr Carswell suggesting that all scrubbers are removed from coal generators? Adds a lot to cost of generation after all.

    does he want to return to the killer smogs of last century?

    As you seem so certain of the figures can you provide references to real data showing how “greencrap” increases the cost of all fuels? For I must be reading the ofgen figures wrongly.

    [Reply] Your ofgen figures are out of date. See the recently FOIA’d report from DECC in a recent thread

  5. oldbrew says:

    But they’re only copying the German model…

    ‘What has gone wrong with Germany’s energy policy’
    http://www.economist.com/blogs/economist-explains/2014/12/economist-explains-10

    ‘the prices paid by consumers have been rising. This is because of the above-market prices guaranteed for renewable energy. On a sunny, windy day, a flood of renewable energy surges into the system; it must be, by law, bought by grid operators first, with the producers paid those above-market rates. Those rates are subsidised by a surcharge on customers, and the surcharge must go up when more renewable kilowatt-hours are poured into the system. But an unintended side-effect of the policy has been that renewables undercut relatively climate-friendly natural gas on price. This means that traditional utilities have turned instead to much more climate-damaging coal for generation. The result is that prices have gone up and the use of renewable sources has expanded, but Germans have ended up emitting more carbon dioxide as a result of the extra coal—hardly the result the architects of the Energiewende hoped for

  6. Using DECC’s own figures, the effect on prices of climate crap is £17.8[Bn] pa by 2020.

    http://notalotofpeopleknowthat.wordpress.com/2014/12/16/the-cost-of-the-uk-govts-climate-policies/

  7. Joe Public says:

    @ thefordprefect at 12:30 pm

    I fear you’ve misunderstood your own ‘evidence’. Those lines represent components of an index, NOT prices.

    Current domestic electricity prices are around 17.5 p/kWh at day rate & 6 p/kWh night rate

    Gas is only ~ 4.75 p/kWh

    A spectacular own goal.

  8. Joe Public says:

    BTW – there’s a typo in PH’s posting – “…..DECC’s own figures, the effect on prices of climate crap should be £17.8 billions pa by 2020.”

  9. tallbloke says:

    Joe: Yep, Mark Reckless pointed that out right around the time he told us UKIP will abolish DECC🙂

  10. Kon Dealer says:

    The Westminster jizzweasels who so enthusiastically voted for the greencrap Climate Change Bill, written by the scientifically-illiterate cretin, Bryony Worthington (BA English) and endorsed by the equally scientifically-illiterate cretin, Ed Millibrain (BA PPE), need to be kicked out at the coming election.
    UKIP is the only party with a coherent policy against greencrap.

  11. A C Osborn says:

    +1000