Ecotricity calls for “level playing field” for energy subsidies
Green energy news – by GreenWise staff
6th October 2015
UK green energy company Ecotricity has today challenged the Government to scrap subsidies for nuclear power and fossil fuels to create a level playing field after it slashes support for renewable energy.
Ecotricity chief Dale Vince made the call following the publication today of Renewable UK’s State of the Industry report, which found the industry had enjoyed incredible recent success with 25 per cent of the UK’s electricity now generated from renewable sources.
Vince said: “Renewable UK’s State of the Industry report makes clear just how far the renewable energy industry has come and how important it is to our country.
“In the second quarter of this year renewable energy, for the first time, provided more power to Britain than the nuclear and coal industries, a record 25 per cent. And it has done so with a fraction of the subsidies that the fossil and nuclear industries have had and continue to have.
Vince pointed to the International Monetary Fund, which reported earlier this year that subsidies to the fossil industries in Britain amount to £30 billion each year. This is he said amounted to over £1,000 per household per year.
“In contrast, support for all renewable energy amounted to £2.6 billion last year – about £100 per household per year – with onshore wind, which is the main focus of Government attacks, adding just £10 to household energy bills,” Vince stated.
“Unfortunately our Government appear ideologically opposed to renewable energy and have moved to put a stop to this incredible success story. Not just cutting all support and increasing planning hurdles, but even going so far as to make renewable energy pay the Climate Change Levy, which is (or was) a tax on fossil fuels to fund climate change measures. Renewable energy in Britain now effectively subsidies the fossil fuel industry – to the tune of £1 billion every year.
“Vast sums are spent to support the nuclear and fossil industries, just last week George Osbourne announced an extra £2 billion sweetener to encourage the Chinese to build the new nuclear power station at Hinckley – state ownership by a foreign power.
“Nuclear energy will be paid twice the market price for power – for the next 35 years and then we’ll have to clean up the mess left behind, which already amounts to £120 billion for the current fleet of nuclear being decommissioned.
“Renewable energy receives one tenth of the support that fossil fuels do, yet powers 25 per cent of the country. And Government says only renewable energy has to stand on it’s own two feet. It makes no economic sense.
“Britain is blessed with enough renewable energy to power our entire country several times over, safely, without pollution and at the lowest cost of all energy sources.
“If there was a level playing field in Britain, renewable energy would win hands down. But the market is being rigged by the Government.”
Vince said: “Renewable UK’s State of the Industry report makes clear just how far the renewable energy industry has come and how important it is to our country.
“In the second quarter of this year renewable energy, for the first time, provided more power to Britain than the nuclear and coal industries, a record 25 per cent. And it has done so with a fraction of the subsidies that the fossil and nuclear industries have had and continue to have.
Vince pointed to the International Monetary Fund, which reported earlier this year that subsidies to the fossil industries in Britain amount to £30 billion each year. This is he said amounted to over £1,000 per household per year.
“In contrast, support for all renewable energy amounted to £2.6 billion last year – about £100 per household per year – with onshore wind, which is the main focus of Government attacks, adding just £10 to household energy bills,” Vince stated.
“Unfortunately our Government appear ideologically opposed to renewable energy and have moved to put a stop to this incredible success story. Not just cutting all support and increasing planning hurdles, but even going so far as to make renewable energy pay the Climate Change Levy, which is (or was) a tax on fossil fuels to fund climate change measures. Renewable energy in Britain now effectively subsidies the fossil fuel industry – to the tune of £1 billion every year.
“Vast sums are spent to support the nuclear and fossil industries, just last week George Osbourne announced an extra £2 billion sweetener to encourage the Chinese to build the new nuclear power station at Hinckley – state ownership by a foreign power.
“Nuclear energy will be paid twice the market price for power – for the next 35 years and then we’ll have to clean up the mess left behind, which already amounts to £120 billion for the current fleet of nuclear being decommissioned.
“Renewable energy receives one tenth of the support that fossil fuels do, yet powers 25 per cent of the country. And Government says only renewable energy has to stand on it’s own two feet. It makes no economic sense.
“Britain is blessed with enough renewable energy to power our entire country several times over, safely, without pollution and at the lowest cost of all energy sources.
“If there was a level playing field in Britain, renewable energy would win hands down. But the market is being rigged by the Government.”
Last week, seven trade associations that represent the UK’s renewable energy industry, published a joint statement criticising the Government’s action of withdrawing subsidy support. This followed a warning from Britain’s leading business group, the CBI that the “roll-back of renewables policies” was sending a worrying signal to businesses.
The Conservative government has recently announced a major roll-back of green policies including an end to subsidies for onshore wind and solar and closure of its support for the Green Deal, and the scrapping of the zero carbon homes policy.
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