Robbing Peter To Pay Paul
Net Zero Watch has belittled the government’s announcement that it will cut electricity bills for large industrial users by 25%. The campaign group has pointed out that the cost of the discount has to be paid somehow.
Newspaper reports suggest that industrial gas users will be footing the bill, although details are scarce.
Net Zero Watch director Andrew Montford said:
Ed Miliband is once again merely proposing to shuffle costs from one energy user to another. Robbing Peter to pay Paul is all he has to offer, because his mad fixation on decarbonisation means he will not look at the underlying problem, namely the gross inefficiency of a renewables-based grid.
And Mr Montford warned that any relief would be temporary:
This latest wheeze will bring temporary relief for sectors favoured by the Secretary of State, but at the expense of others, who can ill afford it. And in the medium term, bills will continue to rise for everyone. The country can’t afford this madness any longer.
The Telegraph report:
“From 2027, they will no longer have to pay the net zero levies that are normally added to their power bills, such as the renewables obligation, the feed-in-tariff and capacity market charges.
This will be paid for by financial reforms to the energy market and a raid on companies that burn natural gas, through higher carbon taxes, the Government said.”
A spokesman for the business department added that “energy market reforms” will also pay for the changes, including longer subsidy agreements with wind farms – aimed at bringing the overall cost for power down.
Higher carbon taxes will not only punish industrial gas users, many of whom don’t qualify as “large industrial users”, they will also increase the wholesale price of electricity, meaning that while large industries will be better off, the rest of us will have to pay the bill instead.
This gives the lie to Starmer’s claim that “it would not be paid for via extra charges on households”.
The claim about “energy market reforms” is just smoke and mirrors. They will have no effect on existing subsidies for renewable energy, and longer term CfDs are only being considered because nobody wants to build offshore wind farms at the prices on offer. Inevitably the next round will see much higher prices, so there will be no “savings” to divvie out.
As is now routine with this wretched Government, policies are announced which cannot be funded and are sold to the public on the basis of a lie.
It is fantasy economics, something we have seen time and again in the last year.
Electricity prices are higher because of the £20+ billion paid out every year to subsidise renewable energy and deal with the extra costs it imposes.
Until this Government gets a grip with the real problem, nothing will change, no matter what smoke and mirror tactics they employ.
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Tom
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More like robbing Peter, Paul and everyone else to pay the devil.
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Carbon Bigfoot
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This guy Miliband jerks off left handed. Apologies to southpaws. As Trump would say “this guy does not know what the FUCK he’s doing”. You blokes coined that term so don’t be offended! I use if often when defining the stupidity of Politicians–great engineering word.
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