Consumer group Which? questions virtue of green energy subsidies
I have long thought current energy policy doesn’t address local rural issues. This article and the issues it reviews are further grist to my mill:
A leading consumer group has warned Ed Davey that his proposed subsidy scheme will encourage the construction of more higher-cost energy projects such as offshore wind farms that might not deliver value for money.
Which? has written to the secretary of state for energy and climate change saying plans for electricity market reform “could result in expensive generation projects being prioritised over cheaper, more cost-effective options”.
The letter, which was copied to Treasury officials, reflects growing concern about the cost of the low-carbon agenda, something that has been raised principally by energy-intensive businesses and Conservative backbenchers.
It comes the day after Ofgem, the energy regulator, warned the big six suppliers that they were in danger of further undermining trust in the industry by failing to pass on wholesale price reductions to retail consumers.
Which? insists it supports a “green” revolution and does not want to pick winners or losers in the renewable energy field but believes the Contract for Difference (CfD) subsidy regime is flawed.