Environmental Levies To Cost £95bn In Next Six Years
By Paul Homewood
| 2.8 Environmental levies | ||||||
| |
|
|
|
|
|
|
| |
Forecast | |||||
| |
2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 |
| Renewables obligation | 7.0 | 7.9 | 8.4 | 8.6 | 6.8 | 6.9 |
| Contracts for difference | 1.5 | 0.9 | 1.0 | 1.2 | 0.7 | 0.6 |
| Capacity market1 | 1.1 | 1.4 | 1.9 | 3.2 | 3.4 | 3.1 |
| Green gas levy | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 |
| Environmental levies | 9.6 | 10.4 | 11.4 | 13.1 | 11.1 | 10.7 |
| Memo: Renewable Heat Incentive | 1.2 | 1.2 | 1.3 | 1.3 | 1.3 | 1.3 |
| Memo:Feed in Tariffs | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 | 1.7 |
| Memo:Climate Change Levy | 1.9 | 1.9 | 2.0 | 2.0 | 1.8 | 1.9 |
| TOTAL | 14.4 | 15.2 | 16.4 | 18.1 | 15.8 | 15.6 |
https://obr.uk/efo/economic-and-fiscal-outlook-november-2023/
The OBR have published the latest Economic & Fiscal Outlook, following the Chancellor’s Autumn Statement, including the above section on Environmental Levies.
These show the costs added to energy bills as a direct consequence of government policy – in this case, the cost of the various assortment of renewable subsidies, capacity market payments and climate change levy.
The OBR also add the cost of the Renewable Heat Incentive scheme, though this is funded out of general taxation. As noted in previous years, the OBR decided to exclude FITs from the table a couple of years ago; I have reincluded them, as they were wrongly excluded and do increase energy bills. Also the Climate Change Levy originates in another table- I have taken the liberty of adding it to Table 2.8.
In short, the cost during this financial year is expected to be £14.4bn, rising to £18.1bn in 2026/27, equivalent to £670 per household.
Not all of the extra costs incurred because of policy are included. For instance, there is no mention of the costs of grid upgrades, system balancing costs and constraint payments – all the direct result of increased renewable generation.
Comments are closed.
NOT A LOT OF PEOPLE KNOW THAT 
Well done Paul for keeping up the analysis. I suggest sending it to the the BBC for them to fact check and publish!
£500/household/year.
That’s how much poorer it makes us – all deliberate and avoidable.
And what do you get for your £500? Double-ought nothing.
When will the media start telling the truth .
The whole GLOBAL WARMING fraud is about destroying the economy of Western countries .
https://www.investors.com/politics/editorials/climate-change-scare-tool-to-destroy-capitalism/
And the hidden costs for everybody will be huge .
Government Press release today.
“Huge boost for UK green industries with £960 million government investment and major reform of power network.” Link: https://www.gov.uk/government/news/huge-boost-for-uk-green-industries-with-960-million-government-investment-and-major-reform-of-power-network?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=03c79976-178c-48ab-ad7f-4da4c8a9fdeb&utm_content=daily
I wonder if there are any hidden costs here or unintended consequences for you to check out Paul, or is it all Good News?
Even a quick scan of this document shows it to be utterly deluded and ignores the cratering of the renewables industry currently going on. The glowing comments come from the usual useful idiots although I was baffled as to why there is a quote from Microsoft and Grantscape – who???
These figures are a drop in the ocean of reality. The grid upgrade is likely to cost £2 trillion, and we will get no change out of £3 trillion for the storage required to deal with a 2 week calm period in winter (not that we even have the technology). With all the other costs, we are looking at more like £250,000 cost per household overall, and even spread over 25 years that’s £10,000 a year per household to add on to the £670 mentioned above (and that will itself be at best half the true cost as renewable subsidies inevitably rise).
Yup, ask the Heron about windmills. It knows it’s no use go’n fishin’ ( for wind) if the wind don’t blow or the wind’s too strong! Now Windmills and Batteries and more cabling doesn’t MAKE power for us – just inefficient means of drawing and suppling the stuff. and what are ye gonna store if there’s no surplus power being produced. Drive a Hybrid Car and find out how useless they can be for short runs to market.
while it is not paid from government funds, forcing people to buy heat pumps and electric cars removes a lot of disposable income, and of course any grantsn (bribes) given are also taken from government funds.
Going green is very expensive, largely ineffective and inferior to existing technology..
The green levy should be itemised on our gas and electric bills, not hidden the overall cost, that would make it more obvious, but unlikely that the idiots at OFGEM would allow that. The piss artist that runs it, Jonathan Brearley was on the news last night explaining that price rises were not down to OFGEM.
Brearley co wrote the climate change act, changed OFGEM’s mandate from protecting consumers from price gouging by the oligopoly of suppliers and put going green top. Then approved financially unstable wholesalers who went bust, leaving us, the customers to make up the losses in the form of raised prices, particularly standing charges. If OFGEM had never existed we would have a proper competitive market place now, and the lower prices that comes from competition.
Having been brought up in the 1950s in a Victorian/Edwardian house with coal fires, coal range for cooking, water from a well in the garden, ice on the inside of bedroom windows, chilblains all winter and fights over who got the cat, I am glad I will not be around to see the looming disaster. We are suffering this fate because of witless academics in ivory towers, mastibating over wave equations and ill-educated politians who can’t wipe their bottoms without putting their fingers straight through the paper! Real technical progress, of the sort our Victorian forebears engaged in, involves cutting costs with smart technical solutions – not loading the economy with huge extra costs while not providing viable solutions to the problems. We have a childlike faith in a belief that has only one outcome. Visit the deserts of Iraq – those mounds of mudbrick are all the remains of ziggarats raised by people to gods that did not exist, in the hope that these non-existent gods would save them. Windmills, I ask you – Well, we all know what happened to Don Quixote de la Mancha, tilting at windmills.
Funny how there is all this head-scratching over the rising cost of the standing charge. As somebody said yesterday, use no energy at all and it costs you £300 a year. Martin Lewis’s simple pie chart showed quite clearly that the blame lies with the rising grid costs, not to mention ‘smart’ meters, but he was not able to make the connection. He wanted the standing charge put onto the unit cost.
A lot of this money has been used to pay for the costs of transferring customers from all the bust energy companies.
Follow that money – where is it going? Are current MPs or connections thereof benefitting? As the climate crisis, hence the solution to it, nut zero, is an hoax, one can only presume its about money, not protection from some made up con – a transfer of money from the masses, to the elites, nothing more and I hope it crashes and burns as people say NO
World’s largest biomass – wood pellet – produce Enviva is facing bankruptcy as it is facing rising prices for the trees it buys. What? Don’t they just buy – or take away for free – sawdust and brash? Seems not.
The use of CO2 as a “pollutant” is genuine Orwellian duckspeak. No one has proved that CO2 is causing warming, (if the is actually warming unusually). The CO2 theme allows government to pass the buck on issues: I’m sure that the massive number of potholes is down to “climate change” as is the NHS crisis etc. etc.