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Boris Johnson accused of misleading the public on the rising cost of green energy levies

April 22, 2022

By Paul Homewood

I don’t know who is advising the PM on energy matters, but they should be sacked!

 

 

Net Zero Watch has accused the Prime Minister of being economical with the truth about the cost of renewable energy levies.
Speaking during his visit to India, Mr Johnson rejected growing calls for scrapping green levies on energy bills, claiming that renewable energy “has helped to reduce bills”.

 


Mr Johnson said:
"Overall, if you look at what we have done with renewables it has helped to reduce bills over the last few years and will continue to do so. That’s why one of the things I want to do is use this moment to really drive towards more offshore wind turbines."


In fact, the opposite is true: the costs of renewable levies on energy bills have risen significantly in the last few years.
According to the Office for Budget Responsibility (OBR) the cost of green levies on energy bills has risen from £7.5 billion in 2018/19 to 9.5 billion in 2021/22, rising to £12.4 billion in 2026/27 (the OBR has excluded the costs of the Feed-in Tariff (FiT) for small-scale renewable generation).

 

 

Tab 2.7 of OBR spreadsheet ‘Supplementary fiscal tables: receipts and other‘, in the Economic and Fiscal Outlook – October 2021

 

 

Boris Johnson’s intervention comes just days after government officials briefed the media that ministers were “examining whether green levies – used to fund renewable energy subsidy schemes – could be phased out gradually or dropped altogether by the autumn when bills are expected to soar.”
Green levies currently cost the UK economy about £11 billion a year in total, putting £150 a year on the average household electricity bill, and a further £250 per household on the annual cost of living, a total of £400 per household per year. The levies also depress wages and rates of employment.
Net Zero Watch and a long list of MPs have repeatedly called on ministers to remove these subsidies from energy bills to help reduce the mounting cost of living crisis.
Pollsters have warned the Tories that the cost of living is becoming a defining issue for voters.

 


Craig Mackinlay MP, chair of the parliamentary Net Zero Scrutiny Group, said:
"If renewables were providing cheap energy they wouldn’t need a subsidy, surcharged on consumers’ bills. We hear too much of the low-cost argument about renewables which is simply untrue. The environmental levies are a lever the government could reach for as entirely under their control to provide immediate relief on domestic energy bills. It is becoming incomprehensible why they don’t use it."

 

 
Dr Benny Peiser, Net Zero Watch director said:
"Boris Johnson is prioritising the Net Zero agenda over all other economic and social issues. He even seems prepared to commit political suicide over the cost of Net Zero and cost of living crisis. His self-defeating dogmatism is politically unsustainable."

https://mailchi.mp/cf732c4f3c7e/boris-johnson-accused-of-misleading-the-public-on-the-rising-cost-of-green-energy-levies-188459?e=4961da7cb1

 

 

To clarify the latest situation, CfDs have refunded £138 million to consumers in the first three months of this year – ie a “minus subsidy”. This compares to the OBR’s forecast of a £2.2 billion subsidy for the whole of this financial year. This is because market prices are now higher than strike prices. The refund, however, does not mean that bills are falling – consumers still pay the same grossly over inflated price for renewables covered by CfD. Rather they won’t go up quite as much.

However, this £138 million rebate is chicken feed against the other subsidies – RO, CM and FITs – which are estimated to cost £6.6bn , £0.6bn and £1.6bn respectively this year. It needs to be emphasised that the cost of these three subsidy schemes are still being added in full to electricity bills, regardless of increased wholesale market prices due to global gas costs.

In other words, as I have repeatedly pointed out, renewable schemes covered by RO continue to receive the same subsidy as before, in addition to the rocketing market prices. Capacity Market payments, of course, are a direct cost imposed on customers, to pay for standby capacity needed to cover intermittent wind and solar power. As such the rising cost of gas-fired power has no relevance.

As NZW make clear, our electricity bills are much higher now than they would have been without renewable energy, and the extra cost we are paying has increased year-on- year during the last decade or more.

25 Comments
  1. Curious George permalink
    April 22, 2022 6:44 pm

    The Prime Minister should pay his utility bills from his pocket.

  2. John Hultquist permalink
    April 22, 2022 6:57 pm

    These politicians, Joe B is another, are so far removed from reality they don’t know they are wrong. It is enough to make a sane person weep.

    Maybe BJ and JB are clones!

    • Phoenix44 permalink
      April 23, 2022 7:55 am

      Neither want to make the effort to find out if they are wrong.

    • Mike Jackson permalink
      April 23, 2022 10:19 am

      As witness Biden’s just announced plans to “de-carbonise” the US miltary.
      That distant rumble you can hear is Xi and Putin (and others) trying not to piss themselves laughing!
      You really could not up this stuff! I wonder what the carbon footprint of a 10 megaton warhead is?!

  3. Harry Passfield permalink
    April 22, 2022 7:08 pm

    Paul, is there not one sentient MP who listens to your advice and guidance – and is prepared to act on it, or are they all as thick as mince?

    • Phoenix44 permalink
      April 23, 2022 7:57 am

      The brilliance of the Denier campaign is to scare off questioning. Thst this is economic policy, not science, is the problem. Lunatic left-wing economics has been smuggled in under the cover of “science”.

  4. Mack permalink
    April 22, 2022 7:11 pm

    As I alluded to on a previous post on the same subject, anyone who genuinely believes that this government, under its’ current leadership, will reverse their insane climate policies any time soon, aside from a little tinkering around the edges, is deluded. It would seem that Boris is ‘bought and paid for’ as, apparently, are the leaders of all of the opposition main parties. However, the green train is racing towards the buffers. Come October, when energy prices get hiked once again before the onset of winter, after a summer of rising prices, expect the great unwashed to start sharpening their pitchforks unless a political force emerges to represent their views. Interesting times.

    • Ben Vorlich permalink
      April 22, 2022 7:26 pm

      I have serious doubts that even that will raise the British public from their Turpor

  5. johnbillscott permalink
    April 22, 2022 7:12 pm

    Everyone should go to GovUK and tell the pollsters how it really is

  6. Ben Vorlich permalink
    April 22, 2022 7:23 pm

    While we have so many Humanities and Social Sciences graduates in The Cabinet we’re doomed.

    Humanities (57%) and social sciences (30%), with seemingly only one minister having studied a STEM subject, Alok Sharma, International Development Secretary, who studied Applied Physics. Although Alister Jack attended Heriot-Watt University which is more of an engineering establishment.Ben Wallace didn’t attend a University and has a military background including Sandhurst.

    Who’s going to ask the Green Blob the tricky questions involving more than simple arithmetic.

    • Phoenix44 permalink
      April 23, 2022 7:54 am

      To understand electricity bills you need a passing acquaintance with economics. To understand the so-called energy strategy you need a decent bit of economics. That’s what is lacking. The civil servants have cleverly hidden the costs of renewables in all sorts of ways – pure subsidies (but called things like renewables obligations), carbon costs added to competing generation, Contracts for Difference, balancing costs. And these often impose “invisible” costs e.g. CfDs have a floor price so when market prices are lower than the floor price, we do not benefit. Thus it may be “true” that currently wind power is “cheaper” than gas generation but that ignores a great dealof complexity and other costs. The simple facts are though that our energy system has become (i) in total more expensive, (ii) less reliable and (iii) more vulnerable to price spikes.

      • Ben Vorlich permalink
        April 23, 2022 9:32 am

        Economics graduates:
        Sajid Javid, Priti Patel, Brandon Lewis

        PPE where E = Economics
        Matt Hancock, Liz Truss, Rishi Sunak

        Throw in Grant Shapps with Business and finance, Alun Cairns Business Administration

        That’s about 25% of the Cabinet.
        Then Cameron PPE, May Geography, Brown History, Blair Law, Clegg Archaeology and Anthropology

        So I disagree with your thoughts on Economics. It doesn’t help them ask the right or difficult questions.

        Those that can do, those that can’t teach, those that can’t teach go into politics

  7. Martin Brumby permalink
    April 22, 2022 7:31 pm

    It may just be me, but I suggest that Johnson’s lying about energy costs is just a tad more important than cake-gate. After all, is anyone surprised that the people who devised and enforced the completely useless policies on Covid knew full well that they were indeed useless. Is anyone surprised that they knew that their rules were intended only for “the little people” (including HMQ Elizabeth II, as it happens.)

    His barefaced lies about ruinable electricity costs, however, are apparently designed to deliberately destroy the economy.

    I’ve said before that whilst he claims to admire Churchill, he has far more in common with Lord Haw Haw.

    • Harry Passfield permalink
      April 22, 2022 7:40 pm

      Martin, while the news blob can focus – incessantly – on cake-gate it saves them the trouble of how to ask serious questions on ruin-able electricity costs (and fake MM climate change).

    • Phoenix44 permalink
      April 23, 2022 8:02 am

      I don’t believe they are lies because don’t believe the people who brief him are telling him that renewables are more expensive. A PM simply doesn’t have the time to find out for himself. He relies on his advisers. Sadly the obvious lesson from Covid – don’t rely solely on one group of advisors – has passed him by. The Green Blob infects all of government but especially the civil service, SPADS and quangos. And as with Covid, it is very good at presenting those who disagree as fringe Nazis.

    • Ben Vorlich permalink
      April 23, 2022 9:44 am

      The lying and continued denials the half hearted apologies about No10 Parties are symptomatic of the man. He will happily tell obvious untruths and continue telling them in the face of incontrovertible evidence. He’s done this from long before he entered politics. In fact during his time as a journalist in Brussels he learnt that exaggeration of reality and made up stories played well with a large section of the British public.
      There’s no chance of him changing his mind on this, particularly while Carrie is involved.

      The only hope is that his next bit on the side is a climate change denier

  8. April 22, 2022 9:57 pm

    I have written 3 letters to my MP Selaine Saxby on this topic this past year expressing the total avoidability of renewables, and of the insensible, if not total lack of, science behind Net Zero without her understanding any of it as far as I can tell from her replies. Getting the truth across to any of these politicians is undeniably an uphill struggle !

    imarcus2

  9. roger permalink
    April 22, 2022 10:56 pm

    What a farce to watch the egregious Commons castigate Boris for lying in the Chamber re partygate when at every debate on renewables Starmer and Ed Davey repeat ad nauseam the lies described here.
    There is no doubt that Boris is a serial liar in the House on this subject but so too with few exceptions are the LibLabCon snouting hordes that inhabit the green benches.
    We are treated to a diet of mawkish vomit inducing stories delivered in sepulchral tones regarding constituents with given names sans patronyms who could not say goodbye to relatives at lockdown whilst all the while these apologies for human beings are impoverishing their constituents with green levies that will undoubtedly carry off barrow loads of grannies next winter as the reforming La Nina continues into 2023

  10. Keith permalink
    April 23, 2022 7:50 am

    It’s just Johnson lying again.

    • April 23, 2022 8:21 am

      It’s Johnson doing what his current squeeze is telling him to say

  11. cookers52 permalink
    April 23, 2022 8:41 am

    It’s Earth Day.
    Boris is just repeating the consensus mantra, that is how he got voted in, we got what we voted for, we only have ourselves to blame.
    I see no sign of the climate emergency, but just because an idea is total bollocks doesn’t mean people won’t believe in the Climate Emergency.

    • Ben Vorlich permalink
      April 23, 2022 9:49 am

      Yes we only have ourselves to blame. But as Mélenchon says about the French Presidential run-off the choice is between Cholera and The Plague.

      • It doesn't add up... permalink
        April 23, 2022 3:47 pm

        While Mélenchon himself would have been scarlet fever.

  12. It doesn't add up... permalink
    April 23, 2022 4:43 pm

    I think that in reality only £39,222,407 has been repaid to suppliers in Q1 for Q4. The LCCC is maintaining a lavish reserve. Given that they managed to announce on Jan 12th it seems that they are late with an announcement on the Q2 repayments for Q1. Perhaps there is some debate about holding a large reserve at the expense of suppliers when the risk is now surely whether some generators will not be able to afford the CFD payments if they made a hash of forward sales and hedging.

    https://www.lowcarboncontracts.uk/news/announcement/reconciliation-of-q4-2021-payments-sees-cfd-portfolio-paying-back-to-electricity-suppliers

    It doesn’t look any better for the Q3 payments in respect of Q2.

    https://www.lowcarboncontracts.uk/news/announcement/reconciliation-of-q4-2021-payments-sees-cfd-portfolio-paying-back-to-electricity-suppliers

    I think maybe an MP needs to ask some questions.

  13. 2hmp permalink
    April 23, 2022 5:06 pm

    I wrote to the-Telegraph about this lie about reduced energy costs from our renewables put about by Johnson but they did not publish. The Telegraph clearly does not wish to know that the science does not support NetZero. Why ?

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