Besides the much higher VAT revenue flowing into the Treasury, the Climate Levy is adding hundreds of pounds to bills. Green levies add £11 billion-a-year in costs to consumers – putting £150 a year on the average household electricity bill, and a further £250 per household on the annual cost of living, a total of £400 per household per year. The levies on business have knock-on effects on wages and jobs.
Given green campaigners keep telling us that solar and wind energy are now cheaper than fossil fuels it would be logical to drop the levy that subsidised them in the past. Renewables seem to be in line to take both high market prices for energy and the subsidies, thus generating windfall profits.
Dr Benny Peiser, Net Zero Watch director says
“ministers are realising that billions in subsidies for renewable energy is no longer compatible with the cost of living crisis, threatening the welfare of tens of millions of households and undermining economic and political stability. The longer the Government delays terminating handouts for renewable energy investors the higher the economic and political cost for consumers, businesses and the government.”
The consumers are being ripped off by renewable energy merchants double dipping – high prices and subsidies for what they boast is low-cost energy. Now is the time to lose the levy…
Factsheet: The Cost of Green Levies (PDF)
Brussels has splurged €767,196 of taxpayers’ money funding a National Union of Students scheme promoting energy efficiency on campus. The NUS project offered such illuminating advice to students as “switch off lights and appliances“, “don’t overfill the kettle” and “put on a jumper or a nice jacket“.
The project was rolled out in 17 universities housing 25,157 students over five EU member states, although it only “engaged” with 7,547 students – working out at €101 per student. Enough to make your blood boil…
Osborne’s Budget announcement that green energy producers will no longer be exempt from the Climate Change Levy is driving the renewable industry into meltdown. The levy used to only apply to non-renewable energy but, in a spectucular trolling exercise, now businesses have to pay this green tax even if they are purchasing green energy:
Caroline Lucas: “We’ve seen yet another example of reckless short-term policy making that prioritises the profits of polluters over the public interest in a safe and habitable climate”
RenewableUK: “It’s another example of this government’s unfair, illogical and obsessive attacks on renewables”
Greenpeace: “This will make it more expensive for business to buy electricity from renewable power. He is man out of step with the times”
Friends of the Earth: “This is totally bizarre, making renewable electricity pay a carbon tax is completely counterproductive — like making apple juice pay an alcohol tax”
The green tax raid on green energy producers will raise almost £1 billion a year. Hoist by their own petard…