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Green Energy Crisis: Britain Faces Multi-Billion Black Hole In Renewables Subsidies

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Oliver Wright, The Independent

The Government is facing a multi-billion pound black hole in its budget to pay for new clean energy supplies, which could result in rising household electricity bills unless there is a dramatic decline in investment in renewable technologies.

Senior Whitehall sources have told The Independent that the Department of Energy and Climate Change has already overspent its budget by £1.5bn to support renewable energy projects over the next five years.

But ministers are being warned that unless they increase the budget still further and bring more renewable energy projects online, the UK will have no hope of hitting its legally binding commitments to reduce greenhouse gas emissions in the mid-2020s.

Under the Government’s current projections, the total additional costs added to an average household’s electricity bill to pay for the green schemes are already due to rise from £89-a-year to £188 by 2020. But if ministers continue to pursue official targets with the necessary future investment, this figure will rise significantly.

A new analysis by the think-tank Policy Exchange suggests that the current overspend on renewables subsidies alone could add an additional £20, pushing energy policy costs for the average household to nearly £210 per year.

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