[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]


News Home

Subscribe to RSS feed

Add NWW headlines to your site (click here)

Sign up for daily updates

Keep Wind Watch online and independent!

Donate $10

Donate $5

Selected Documents

All Documents

Research Links


Press Releases


Publications & Products

Photos & Graphics


Allied Groups

Energy reforms could push up family bills  

Credit:  www.key103.co.uk 23 July 2012 ~~

The Treasury, as part of the draft Energy Bill, has said it will not underwrite new investment in nuclear and renewable power facilities.

This could increase the cost of borrowing for energy companies, who will then pass the rise onto customers, according to the Energy and Climate Change Select Committee.

The draft Bill sets out plans for long-term contracts to give power companies a guaranteed price for the low-carbon electricity they produce.

This is intended to cut the risk of investment in expensive projects with high up-front costs, such as nuclear reactors and wind farms.

But firms capable of providing the infrastructure are likely to be deterred by the Treasury’s U-turn about underwriting new investment.

Committee chairman Tim Yeo warned that the Government is in danger of “botching” its plans to boost clean energy by refusing to back new contracts.

He told Sky News: “The Government should have stuck with its consultation proposal last year, which was that the Treasury would stand behind these so-called contracts for difference.

“That is the way these low carbon energy producers would be guaranteed a price for the electricity which they produce.

“Government backing for those contracts has been withdrawn in the draft Bill and that means there is a small element of credit risk attached to those contracts.

“That will raise the cost of the capital to the companies investing and therefore that extra cost gets passed through onto energy bills.”

The plans in the draft Bill amount to the biggest shake-up of the energy industry since privatisation in the 1980s and are designed to keep the lights on for decades to come.

Ministers hope to reduce reliance on coal-fired power stations and imported energy, and boost support for renewable sources like wind, wave and solar, and carbon capture and storage.

The committee spent five weeks taking evidence as part of the pre-legislative scrutiny process before final proposals are put forward later this year.

Mr Yeo is also warning that the plans could increase the power of the Big Six energy companies instead of widening competition.

“The Government has a lot of work to do over the summer to make sure the Bill is fit for purpose in the autumn and is not subject to any further delays,” he said.

Energy Secretary Ed Davey said: “We are determined to use the pre-legislative scrutiny period to develop a robust and effective Bill with the interests of both consumers and investors at the heart.”

Source:  www.key103.co.uk 23 July 2012

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
Donate $5 PayPal Donate


News Watch Home

Get the Facts Follow Wind Watch on Twitter

Wind Watch on Facebook


© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.