Skip to content

FIT Scheme Costs Balloon To £1.6bn

July 22, 2018

By Paul Homewood

 

h/t Philip Bratby

 

A seemingly innocent document from BEIS, announcing the closure of the Feed-In Tariffs scheme to new applicants next year:

 

image

https://r.search.yahoo.com/_ylt=AwrJS9cKbFRb_FAAGSRLBQx.;_ylu=X3oDMTByMWk2OWNtBGNvbG8DaXIyBHBvcwMyBHZ0aWQDBHNlYwNzcg–/RV=2/RE=1532288139/RO=10/RU=https%3a%2f%2fassets.publishing.service.gov.uk%2fgovernment%2fuploads%2fsystem%2fuploads%2fattachment_data%2ffile%2f726977%2fFITs_closure_condoc_-_Final_version.pdf/RK=2/RS=tdf_DxMTlq_XQyzljmEBQ7dvVuI-

 

As the document explains, the FIT scheme was introduced to encourage small-scale low-carbon generating projects, with extremely generous subsidies:

 

image

 

 

Page 11 though reveals the dirty little secret of how FIT has ballooned out of control:

 

image

 

 

FIT subsidies have contributed to overall Environmental Levies and RHI costs, which will be costing the UK £13.9bn a year by 2022-23:

 

image

http://obr.uk/efo/economic-fiscal-outlook-march-2018/

 

 

Still, it’s only money!

15 Comments
  1. David Richardson permalink
    July 22, 2018 12:10 pm

    “Still, it’s only money!”

    Yes it’s not as if they could just print it, is it? OH! wait a minute.

  2. July 22, 2018 12:34 pm

    It’s a Robin Hood effect in reverse – transferring money from poor to rich.

    • DaveP permalink
      July 22, 2018 5:17 pm

      Or, transferring money from poor people in rich countries to rich people in poor countries.

    • July 23, 2018 11:05 am

      Remember, Robin Hood was taking back what the GOVERNMENT, had squeezed from the people and returning it to them. It was the Medieval version of “draining the swamp.”

  3. July 22, 2018 1:10 pm

    Numbers should always be given with something that puts them in perspective
    27.2 millions households in the UK
    So £13.9bn a year by 2022-23 for overall Environmental Levies and RHI costs
    £13900 million/27.2mn = £511 per household/year

    FIT = special high Feed In Tariffs to support renewables built by rich people
    Generally about 2.5 times the wholesale cost of conventional power
    Government 2020 target was £440m = £16 per household/year
    Been bit of an over allocation so
    Now projected 2020 to be £1600m = £59 per household/year

    • It doesn't add up... permalink
      July 22, 2018 2:58 pm

      In addition, roughly half the network costs are only being incurred to enable energy to be routed from wind farms and solar panels to areas of demand, and for the provision of backup from interconnectors etc. This cost is never identified publicly, but it can be guaged by looking at what the grid cost was before renewables were of any significance.

  4. Tony Budd permalink
    July 22, 2018 1:33 pm

    I agree with Stewgreen – the Government should be forced to quote all amounts of our money they’re spending in pounds per household per year.

    • July 22, 2018 2:09 pm

      Tony Budd:

      Additionally these amounts should be clearly shown on the energy bill. Otherwise they are just a stealth tax with the added salt in the wound of the addition of VAT.
      A tax on a tax doesn’t seem right to me and the secrecy is despicable.

      • July 22, 2018 4:07 pm

        I agree. Without the amounts being clearly shown, the Government can continue to blame rising electricity prices on the big 6 energy companies (and the BBC will allow the Government to get away with it).

  5. July 22, 2018 2:54 pm

    And the industry and their mouthpieces are squawking because the Government hasn’t announced a scheme to replace FiTs!!

    On the subject of secrecy, there are also constraint payments to be considered. Those in the balancing mechanism we know about – 108 million last year.

    Those outwith the balancing mechanism, which in 2012 were the same as those within, we haven’t got a clue – and yet all consumers pay.

    Anything consumers pay for should be wholly transparent.

  6. Derek Buxton permalink
    July 23, 2018 9:23 am

    But just how long can people, especially the poorer sections of society, continue to pay these high costs? Or are we just expected to die? What is the number of deaths to be before the government do something, after all it is certainly their fault and their doing!

  7. Max Sawyer permalink
    July 23, 2018 11:47 am

    Still, it’s only TAXPAYERS’ money!

    The well-known bottomless pit that funds any amount of totally pointless virtue-signalling.

  8. Athelstan permalink
    July 23, 2018 2:05 pm

    Here’s the bottom line:

    FIT subsidies have contributed to overall Environmental Levies and RHI costs, which will be costing the UK £13.9bn a year by 2022-23.

    It is, very expensive method to impoverish the consumer while in the same moment trashing what was once albeit not perfect, it was a pretty efficient system of delivery of electrical/gas supply.

    I can’t think of anything other than, it was deliberately done, surely any logically minded individual could never for moment even contemplate sanctioning what amounts to; politically driven and administered energy policy cluster**** – of sabotage and purposefully designed, surely not?

    It begs the question, do the PTB, HMG really hate us that much?

  9. July 24, 2018 1:58 pm

    I am unable to get my head around all of these ‘taxes’. Can somebody help by allocating an approximate a proportion of that £13.9 billion going to nuclear and the proportions going to wind and solar?

    • July 24, 2018 3:37 pm

      Nothing’s going to nuclear yet, as Hinkley is not built yet. Old nuclear has to rely on market prices, just as CCGT.

Comments are closed.

%d bloggers like this: