Govt floats plan to pay individual households fracking dividend

Posted: August 7, 2016 by tallbloke in Energy, exploration, fracking, government, solar system dynamics

uk-piggy-bankResidents affected by fracking could be paid a proportion of the proceeds of shale gas projects, the government has suggested.

A shale wealth fund was unveiled in 2014 to set aside up to 10% of the tax proceeds from fracking to benefit communities in the UK hosting wells.

The PM is now considering paying the money directly to individual households instead of councils and local trusts.

The plan is one option due to be outlined in a consultation on Monday.

It is expected the new fund could deliver as much as £10m to each community that has wells sited.

BBC business correspondent Theo Leggett said the government had not placed a figure on the amount potentially available to individual households, but said it was understood to be up to £10,000 each.

The shale wealth fund was established by ex-chancellor George Osborne to allow a percentage of the proceeds from fracking to be given to councils or community trusts to spend.

However, speaking ahead of the launch of a consultation on the fund, Theresa May said she wanted to make sure that individuals benefitted personally from the government’s economic decisions.

She said the government wanted to help “ordinary families for whom life is harder than many people in politics realise”.

“This announcement is an example of putting those principles into action,” the prime minister added.

“It’s about making sure people personally benefit from economic decisions that are taken – not just councils – and putting them back in control over their lives.”

Mrs May said the government would look to apply the same approach to other projects in the future.

  1. oldbrew says:

    Mail on Sunday: ‘Will you hit the frackpot?’

    Or: will you refuse your payment if you disagree with fracking in your area?

  2. Adam Gallon says:

    I note Greenpi$$ is complaining about these “Bribes”. Perhaps somebody could point me towards where they issued similar complaints about similar actions with windmills?

  3. ivan says:

    I can see the point in giving the money to individual households, it bypasses the green blob in the councils and other agencies.

    The big question remains, why is it necessary in the first place? Fracking is not invasive like coal mining and I doubt that anyone would know if a small hole was drilled 2 plus kilometres under their house.

  4. oldbrew says:

    ivan: ‘A large number of trucks are used to carry and store the water, sand, and chemicals.’

    Some short-term disturbance is probably inevitable during initial drilling.

  5. ivan says:

    oldbrew. An even larger number of trucks and very heavy machinery are used in coal mining, especially if it is open cast, and they continue for the life of the mine.

    Since this was proposed in 2014 it was supposed to be a way of paying off the green blob. The fact that any payments appear to be likely to go to individuals is one way we can see that, at long last, the green blob are losing their grip. Yes, they will scream and shout about it but, hopefully, their days are numbered.

  6. “Govt floats plan to pay individual households fracking dividend.”

    Somebody in government is thinking like Adam Smith.

    I have to laugh when I think how Greenpeace and similar Luddite organizations will counter this brilliant Catch-22.

  7. Bitter&twisted says:

    Fracking great idea!

  8. Sleepalot says:

    It raises the cost of the gas, and increases the number of administrators.

  9. oldbrew says:

    Two Thirds of US Gas Is Fracked

    ‘Its benefits are manifest and its bona fides are unquestionable—that it now produces half of our oil and two thirds of our natural gas is nothing less than jaw dropping.’

    In spite of attempts by Saudis to drop the price to unprofitable levels.

    ‘American CO2 emissions have actually declined during the shale boom’

  10. Bloke down the pub says:

    It will have the unfortunate side-effect that anyone who is logical and reasonable enough to accept fracking in their neighbourhood will now be accused of supporting it purely out of greed.

  11. dp says:

    What a clever way to drive up the cost of fracked energy. A simple tax would have been too obvious.

  12. oldbrew says:

    More frackonomics…

    Britain’s new energy minister, Lucy Neville-Rolfe, shares her thoughts on fracking

    ‘As the new Minister for Energy, I am committed to delivering an economy that works for all, ensuring the benefits of economic growth and investment are spread as widely as possible.’

    Sounds OK but let’s see how it all works out. Looks like Emma Thompson has lost the battle 🙂