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75% Want To Pay Twice As Much For Energy

March 16, 2014

By Paul Homewood

 

Bishop Hill noted the other day that an IPSOS – MORI opinion poll (Page 31,) recently released, suggests that offshore wind farms are strongly supported.

75% support their development in the UK, and 58% believe they will have a positive effect on the economy.

Unsurprisingly, the support is even higher amongst 16-24 year olds, with numbers of 85% and 70% respectively.

 

I wonder whether the numbers would have been the same, if the interviewees had been told just how much more offshore wind would cost them?

 

A reminder of the Strike Prices that will be guaranteed for wind farm operators for the first 15 years of their operation, and all inflation indexed.

 

image

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https://www.gov.uk/government/news/record-investments-of-40-billion-in-renewable-electricity-to-bring-green-jobs-and-growth-to-the-uk

 

Meanwhile, the current wholesale price for electricity is £49.78/MWh. Given that the above Strike Prices are based on 2012 prices, they will already have increased by the rate of the last two years’ inflation, around 5%. Therefore, any offshore wind farms commissioned this year will receive about £162/MWh at the outset, a subsidy of more then £112/MWh.

 

The current retail price of electricity is around £110/MWh (based on my bills, anyway!), so if all power was sourced from offshore wind farms, everybody’s bill would effectively double.

How this can be regarded as a good thing, and positive for the economy, is a mystery to me.

 

BTW

Before anybody suggests that energy prices will rise so fast that they quickly overtake the cost of offshore, take a look at the chart below. Prices have actually fallen over the last two years.

 

140303_Crude-oil-and-annual-wholesale-gas-and-power-prices-version-2

http://www.catalyst-commercial.co.uk/catalyst-business-energy-market-brief-march-2014/

11 Comments
  1. March 16, 2014 5:05 pm

    Thank you very nice site!

  2. A C Osborn permalink
    March 16, 2014 5:47 pm

    Of course one of the main reasons for that (other than brainwashing at school/college) is that they probably do not pay any electricity bills themselves. Perhaps they ought to ask their Mums and Dads before answering the question.

  3. Brian H permalink
    March 16, 2014 7:02 pm

    Residential costs are only a fraction of the story. Commercial and industrial impact is even heavier.

    • Joe Public permalink
      March 16, 2014 10:00 pm

      Actually, apart from production/services which get exported, UK’s citizens pay for the increased power costs of industry & commerce too, in the form of higher commodity prices.

      Something the Green Party didn’t realise.

  4. Roger Dewhurst permalink
    March 16, 2014 7:05 pm

    Doubtless the support among 10 year olds would have been 95%

  5. March 16, 2014 7:14 pm

    They brainwash them at school. It’s like trying to de-program a Moonie.

  6. Paul permalink
    March 16, 2014 7:25 pm

    So many contradictions in terms of the answers given. I suspect many of the respondents got so cheesed off with it all they just ended up filling in random tick boxes.

  7. Joe Public permalink
    March 16, 2014 10:04 pm

    I disagree with your headline, Paul.

    I don’t believe anywhere near that percentage ‘want’ to pay more for their energy. I really believe the vast majority are blissfully ignorant of the relationship between subsidised ‘green’ policies, and power costs.

  8. Streetcred permalink
    March 16, 2014 10:17 pm

    Well, the demographic that wants higher prices has been identified … so I see the positives in this. Charge them more and let the rest of us get on with our lives 😉

  9. Herve permalink
    March 17, 2014 11:10 am

    The poll is purely dissinformational, propaganda from insane dishonest greenies. How long Democracy would tolerate this kind of disinformation for obvious political games?
    Democracy repects Mankind;
    Mankind shall in turn respect Democracy otherwise it becomes a very useful tool to bring facists in power, ref Hitler democratically elected in january 1933.

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