The Office for Budget Responsibility has just published the Spring Statement. It’s Economic & Fiscal Outlook reveals that the cost of Environmental Levies this year will be £11.3bn, a rise of £2.0bn over the last financial year.
|2.7 Environmental levies|
|CRC Energy Efficiency scheme||0.5||0.6||0.5||0.5||0.0||0.0||0.0|
|Warm home discount1||0.0||0.3||0.3||0.3||0.4||0.4||0.4|
|Contracts for difference||0.0||0.6||1.3||1.9||2.5||2.8||3.0|
|Memo: Expenditure on renewable heat incentive (RHI)||0.5||0.7||0.9||1.0||1.1||1.1||1.1|
|Note: The ‘Environmental levies’ line above is consistent with the ‘Environmental levies’ line in Table 4.6 of the March 2018 Economic and fiscal outlook.|
|1 The ONS have yet to include Warm Home Discount, Feed-in Tariffs and Capacity market auctions in their outturn numbers. If they were included, they would have been £0.3bn, £1.3bn and £0.0bn respectively.|
In addition, we can add £1.9bn for Climate Change Levy receipts, though this is actually tax revenue, unlike the levies, which are essentially subsidies for renewable energy.
|2.13 Climate Change Levy receipts|
|CCL Receipts (ex Carbon Price Floor)||0.9||1.1||1.4||1.6||1.6||1.7|
|CCL Receipts – Carbon Price Floor||0.9||0.8||0.8||0.7||0.6||0.5|
The increase of £2.0bn represents a rise in average electricity bills of about 5%, and Environmental Levies now account for about a quarter of bills. This excludes CCL receipts and other costs such as building new transmission lines to cater for renewable energy.
There seems to be a conspiracy of silence about these costs, with an almost total reluctance to mention it amongst our political class, media (with a couple of honourable exceptions) and climate lobbyists.
This is very strange, given the considerable controversy which surrounds the cost of things like the Overseas Aid Budget and HS2, which are of a similar scale. Not to mention the well publicised shortage of funds for the NHS, Social Care, Defence, Police etc etc.