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Greenest Government To Raise Energy Cost By £400 In Next 5 Years

Steve Hawkes, The Sunday Telegraph

Every British household will pay an average of more than £400 in higher bills over the next six years to pay for subsidies under controversial Government plans to hit green power targets.

The money will go solely to paying for otherwise uneconomic offshore wind turbines, onshore wind farms, biomass plants, landfill gas sites and hydro power plants, new figures show.

The first analysis of newly agreed prices paid to “green” generators, carried out by the Taxpayers’ Alliance, shows that the total subsidy will be nearly £22 billion by 2020.

The subsidies are paid for by consumers and businesses through their annual bills and passed to the green energy generators.

Half of energy bills are paid by business, with the other half by domestic consumers, and the total subsidy divided among British households equals £425 per household.

Many, however, will pay more because they have bigger bills.

As well as recouping the cost of renewable subsidies through domestic bills, households will also foot the bill for the carbon floor price tax and the Energy Company Obligation efficiency scheme, where suppliers are supposed to fit out homes with roof insulation and better boilers.

The other schemes suggest the possibility of further increases to the cost of electricity.

The calculation comes amid mounting political pressure over the cost of “green” subsidies, with George Osborne, the Chancellor, and Ed Davey, the Energy Secretary, said to be at loggerheads over other aspects of attempts to reduce the amount of carbon produced to generate electricity.

The Taxpayers Alliance said the huge bill showed both the failure of the Government’s energy strategy and the folly of Labour leader, and former energy secretary, Ed Miliband’s pledge to freeze domestic gas and electricity bills at the same time as sticking to the “green” targets.

Its analysis shows that almost £2 billion was spent in renewable subsidies in the 2012-2013 financial year.

This will rise to an estimated £5.3 billion by 2018-2019, adding another £60 to every annual domestic electricity bill in the country and increasing business costs dramatically.

Over the six years the total subsidy will be £21.9 billion, the Taxpayers Alliance said, with wind farms accounting for the majority.

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