Wednesday, July 30, 2008

First, do no harm

In recent months there has been a lot of discussion about how the Government might help people facing high energy prices. The unions, politicians and various campaigners have called for a crackdown on energy companies they accuse of profiteering.



Yesterday, the Renewable Energy foundation revealed that the Government's own environmental policies are a major component of the price of energy:



  • Climate change policies make up around 14% of the average domestic electricity bill and 3% of the average domestic gas bill.


  • Climate change policies also make up 21% of the average business electricity bill and 4% of the average business gas bill (i).


  • By 2020 the burden of green policies will have risen to 18% of the average domestic electricity bill and 55% of the average business electricity bill(ii).


  • Despite this massive cost the regulations are projected to achieve very little. The Renewables Obligation is expected to cut emissions by just 1.6% at an incredible cost of £400 per tonne of carbon emissions saved.



    Most of these climate change policies, from the Renewables Obligation to the European Union Emissions Trading Scheme, have been introduced since the current Government came to power. They have been major drivers of the rises in energy prices. While politicians single out energy companies for criticism they keep quiet about their own complicity in rising prices.



    With Ofgem confident that our energy market is reasonably competitive isn't hounding electricity companies just a crude attempt to displace popular resentment of high prices? If the Government were really committed to bringing down prices it could easily do so by scrapping some of these ineffective climate change regulations.

    Cross-posted from the TaxPayers' Alliance blog.

    4 comments:

    Anonymous said...

    trade show standsexhibition stand manufacturers
    In a nutshell, the bill would stop any major regulation issued by a federal agency and costing more than $100 million from taking effect unless it received approval from both houses of Congress and the president. Many such rules are issued every year involving everything from food safety to efficiency standards for cars. Disapproval from one house would be enough to kill a rule and force the agency to start all over again. A rule would also die if one house failed to act within 70 days.

    Anonymous said...

    MIAMI INTERIOR DESIGNERFlorida FHA Loans
    As Germany fights to save the euro, it has found an unexpected friend in Poland, a historic enemy that now staunchly supports greater European integration.

    inxscreations said...

    Nice blog and great content.need an Exhibition stall fabricator and designer or event management services - best blog on blogger and top class and Quality content.

    peacemedia said...

    Interesting! I anticipate that you will thank for your season of this marvelous read!!! I definitely welcome every single bit of it and I have you bookmarked to take a gander at new stuff of your blog a particular fundamental read blog.
    stall designer in Hyderabad