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Prime Minister: Green Subsidies ‘Driving Up Energy Bills’

Ruth Bradshaw , USwitch

Prime Minister David Cameron has suggested that he may cut subsidies for green energy sources such as solar panels and windfarms, after acknowledging that consumers ultimately compensate for the discounts through increases to their energy bills.

Despite the Department of Energy and Climate Change regularly blaming rising energy bills on the soaring cost of gas, Mr Cameron admitted that the green subsidies offered to various organisations means that consumers ultimately pay more to make up for it.

Taking action

In recent times, the government has taken action to curb the spread of windfarms across the country, spurred by around 100 Tory backbenchers who had complained about windfarms being built in their constituency.

Few were as opposed as the former energy minister John Hayes, who described them as a blight on the landscape, but it was nevertheless enough for the coalition to order modest cuts to subsidies for onshore wind farms and solar panels last year, while also issuing planning guidance earlier this month that will make it more difficult for developers to construct new turbines.

These moves have drawn criticism from environmentalists who point to Mr Cameron’s vow to be the greenest government ever when he was running for election, but the prime minister said that action needs to be taken to ensure that the current administration’s policy remains on track.

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