Renewable Subsidies Have Cost £78 Billion In Last 10 Years

By Paul Homewood

According to Boris Johnson:

“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.”

Perhaps he should read what the Office for Budget Responsibility have to say. According to their annual Medium Term Forecasts, subsidies for renewable energy have cost the public £78 billion in the last ten years. This equates to about £3000 per household.

Nearly all of this has been added to energy bills, although a small part, the RHI scheme, is funded out of general taxation. As domestic users only consume about a third of total electricity generation, their bills reflect about a third of this cost. However, the public end up paying for the other two thirds one way or another, whether through higher prices and fares, higher taxation and lower public spending.

The split of this subsidy is :

Type£bn
RO46.0
CfD5.6
CRC4.2
CM4.1
FIT12.7
RHI5.4

Note that the OBR no longer include the cost of FITs, even they still exist. I have therefore included estimated costs of £1.6bn a year for the last four years.

I am firing off a FOI to the government, asking for details of their claimed “reduced bills”!

The annual tables are below:

Economic and fiscal outlook – March 2022

via NOT A LOT OF PEOPLE KNOW THAT

APRIL 23, 2022

Renewable Subsidies Have Cost £78 Billion In Last 10 Years