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Green energy to inflate bills by a third, experts claim 

Credit:  By Claire Carter | The Telegraph | 04 July 2013 | www.telegraph.co.uk ~~

Green taxes to subsidise wind turbines and hydropower will push up energy bills by around a third by 2020, experts predict.

Average energy bills for families are estimated to reach almost £2,000 by the end of the decade – with green charges and VAT increasing prices by 29 per cent – experts claim.

The Taxpayers’ Alliance is calling on ministers to put an end to rising charges caused by Britain’s race to increase the use of green energy, as families continue to struggle with energy bills.

Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: “People who are already finding it hard to pay bills will not be able to cope with big increases in prices needed to meet draconian targets.”

Energy analysts from Liberum Capital predict the rise in green energy taxes will mean average electricity bills reach £812 by 2020.

The TaxPayers’ Alliance estimates a similar impact on gas bills, which would rise to £1,070, making the total average bill almost £1,900.

The increases mean by the end of the decade around £7.6 billion will be raised from energy bills in subsidies to be spent on green energy projects such as wind farms and hydropower.

The Taxpayers’ Alliance wants the Government to cut subsidies for expensive green energy and instead open up new affordable energy sources like shale gas and coal power plants.

However, the Government is facing a tough challenge to increase its share of renewable energy use. It is committed to reducing greenhouse gases by a fifth from 1990 levels, and under EU rules Britain’s use of energy from renewables needs to reach 15 per cent by the end of the decade.

The Department of Energy and Climate Change (DECC) said spending on green energy will be offset by savings for customers, making bills around £166 cheaper.

They said it was gas prices, rather than green subsidies, that have been increasing energy bills. A spokesman said: “Investing in home grown alternatives is the only sure fire way of insulating our economy and bill payers from this volatility.”

Ed Davey, the Energy Secretary, has also promised guaranteed prices – at up to triple market rate – for ‘green’ electricity until 2019, to try and expand Britain’s green energy sector.

Source:  By Claire Carter | The Telegraph | 04 July 2013 | www.telegraph.co.uk

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 educational 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.

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