CPS Research Fellow Tony Lodge debated Secretary of State for Energy and Climate Change Amber Rudd on whether ending onshore wind subsidies would help lower bills in City A.M., Friday 19 June 2015.
Ending subsidies for new onshore wind is welcome and the right thing to do, but it still remains too small a measure to place real downward pressure on bills. Over the last 10 years, annual average energy prices have risen by 131 per cent, easily outstripping other living essentials. And this is against the backdrop of a reduction in the amount of energy used.
Bills will only fall consistently when policies are less driven to subsidising expensive renewables and when the UK can take full advantage of the cheapest fuels available. These must include gas and coal to generate electricity.
The government has legally binding targets to decarbonise; why doesn’t it have targets to reduce bills and deliver a diverse energy mix? Green taxes hit £44.6bn last year and the bill for renewable subsidies rose to £3bn. It’s time for the Conservatives to deliver a lower cost energy policy.