Consumer group Which? questions green energy subsides
The leading consumer group Which? has warned the secretary of state for energy and climate change Ed Davies that his proposed green energy subsidy scheme may not be true value for money, which encourages higher cost energy projects such as off shore wind farms.
Which? group recently wrote a letter to treasury officials reflecting growing concerns about expensive generation projects being prioritised over far cheaper and cost-effective choices. This comes only one day after energy regulator Ofgem issued a warning to the bix six energy suppliers that they were in severe dangers on undermining the public trust by failing to disclose that the wholesale prices has decreased significantly over recent months.
Which? group remains grounded that it promotes the green revolution and insists on not picking winners in the renewable field but is certain however that the contract for Difference subsidy scheme is completely flawed. They suggest that with the absence of competition from the contracts for difference scheme, that it outlines risks of investment which may not delivery true value for money to consumers. The group added that it would prefer ministers to introduce competition between different types of technologies such as offshore and on shore wind farms, but more importantly between operators.
The letter further expanded upon how unclear it would be for any competition for offshore wind under current policies. There are a wide range of costs involved in offshore wind, but precise cost data is near impossible to come by and that by allocating subsidies competitively would uncover this information. The coalition government has prioritised the more expensive option of offshore wind over relatively cheaper onshore wind mainly due to the opposition from the conservatives and some local communities. The difference in costs are mostly down to the maintenance of the turbines which are of course much higher to achieve offshore.
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