Energy Companies are not the Sally Army

The government’s plan to boost levels of renewable energy production were presented to the House today, by the Energy Secretary Chris Huhne. He said the government’s plan was fourfold:

  • to increase the long-term certainty about investment in power generation by providing greater support to the price of carbon to encourage new entrants into the market
  • to introduce long-term contracts for low carbon generation to make clean energy more attractive, including top up payments to low carbon generators if the wholesale price of electricity is low
  • to make additional payments to develop reserve plants to ensure “the lights stay on” during periods of high demand
  • to limit the amount of carbon emissions from “dirty” power stations, including reinforcing current requirements that new coal power stations must incorporate carbon capture and storage.

Speaking on Sky News, Huhne slammed the “armchair economics” of price comparison website uSwitch who have warned of an extra £500 on top of energy bills. Huhne went on to call critics of the plan as “completely bonkers”.

Our best guess, because energy companies are not the Salvation Army and do require a return on their investments… [is that] our bills are going to go up over the next 20 years from an average of £500 for electricity household bills today to about another £160.

Friends of the Earth have tentatively welcomed the government’s plans.



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