British Electric Bills will rise by 27% to Subsidize Wind Farms and other Renewable Energy Initiatives

Posted by PITHOCRATES - May 20th, 2012

Week in Review

Saving the planet isn’t cheap.  It takes a lot of taxes.  Subsidies.  And a significant reduction in your standard of living.  But that’s a small price to pay for not making a difference, isn’t it?  That’s what the British government thinks.  And they are willing to suck the quality of life right out of their people to prove it (see Electricity bills set to rise to pay for wind farm subsidies by Robert Mendick posted 5/20/2012 on The Telegraph).

This week the Department of Energy and Climate Change (DECC) will publish its draft energy bill, setting out how it plans to reform the electricity market and reduce the cost to households.

DECC has insisted that energy bills will begin to fall from next year and will be reduced by seven per cent – or £94 – by 2020 because of new energy efficiency policies.

These include the Green Deal, which will provide loans to fund loft and wall insulation; the roll-out of ‘smart’ meters to help control and monitor energy consumption; and the improvement in the energy efficiency of kettles and other appliances.

But a study of the Government’s own figures by the Renewable Energy Forum (REF), a specialist renewable energy consultancy, has accused DECC of deliberately misleading the public.

REF claims its analysis of the Government’s own figures shows that two-thirds of households, about 17 million in all, will be worse off – even if energy efficiency targets are met in full…

REF estimates that the UK’s climate change policies – which promote wind farms and other forms of renewable energy – will be responsible for ‘major increases’ in the retail price of electricity and gas.

It estimates that electricity prices on domestic bills will rise by 27 per cent by 2020 and by 34 per cent on bills for medium-sized companies. Gas prices will rise by seven per cent and 11 per cent respectively…

Earlier this year, 101 backbench Tory MPs wrote to David Cameron demanding that the £400 million a year subsidies paid to the onshore wind turbine industry be “dramatically cut”. In all, REF estimates that £1.5 billion a year is paid out in subsidies for all forms of renewable energy – including on and offshore wind – and that figure will rise to £8 billion a year by 2020.

The UK budget deficit in April of 2012 was £18.17 billion ($26.76 billion).  So spending £1.5 billion ($2.37 billion) a year they don’t have will not reduce their deficit.  It will only increase their debt.  And the interest they must pay on their debt.  Requiring higher taxes.  A bitter pill to swallow when the cost of electricity is rising at the same time.  Going green is going to impoverish the British people.  And by 2020 things will be over 5 times worse.

And all of this to save the planet.  Funny, really.  Because what the British do won’t be able to offset what the Chinese and Indians are doing.  Their economies are likely to continue to grow.  Pumping far more carbon into the air than the British can ever hope to remove.  So the British green policies will only hurt the British people.  Reduce their standard of living.  Without changing the world in the least.

And all the talk about insulating the UK from energy shocks?  Here’s something to think about.  Let’s say it’s winter. And the UK gets 25% of its electricity from wind farms.  Now let’s say a cold spell sets in.  And the wind stops blowing.  What do you think would happen if a fourth of the available electricity disappeared?  Can you say rolling brownout?  And blackout?  Not a problem you think?  Because your furnace uses natural gas?  Well, it takes electricity to run that furnace.  It takes electricity to pump hot water and blow hot air.  Anyone who lost their electric power in the winter can attest to that.  But the power companies can get the electricity back on line in a day or so.  Of course, you can’t do anything to make the wind blow.  Talk about irony.  To lose your power not from a storm with high winds.  But from a calm day.  Imagine worrying about losing your power whenever the winds don’t blow.  Instead of worrying the few days they blow really hard.  Of course, that risk doesn’t go away either.  Losing your power during a storm.  Sort of damned if the wind blows.  And damned if it doesn’t blow.  Which means you’re pretty much damned all of the time.

And if that wasn’t bad enough (and don’t you think it should be?), the British will be paying higher electric bills.  And higher taxes.  All while making no difference to the environment.  But at least they have the consolation of knowing that the people that are ruining their lives had good intentions.  Sort of makes everything worthwhile, doesn’t it?  Just remember that when you’re huddled under your blankets waiting for the wind to blow again so you can have some heat.

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