Greeny News

Government Bill

energy project will replace the current subsidies to support complex new system that can favor large suppliers

A rush

gas, a major advantage for nuclear power and renewable energy shock - they are widely expected to be the contents of the long-awaited energy bill of the government, the main contents of which will be presented by the ministers in the afternoon.

The nuclear industry should be one of the big winners, with a set of policies to promote energy low carbon - which, controversially, including nuclear and renewables such as wind and solar.

But companies are worried about losing renewable because the current system of subsidies will be replaced by a new system of support complex could favor large companies over smaller rivals.

This new system - known as contracts for difference - enabling companies to sign long-term contracts for the supply of electricity. But the prices of these contracts may be higher or lower than the price of electricity on the wholesale market - attracting companies that are supposed to be the long-term nature of the contracts, given the stability and security they need to invest

However, many renewable energy companies told the Guardian they believed that the contracts would push smaller suppliers in the market. Dale Vince, founder of Ecotricity, has requested an exemption for small suppliers to promote competition in the market.

"This grant is a complex mechanism that is intended to artificially increase the price of electricity and make it more attractive for large companies to build new nuclear power plants, but as a result of any which vendor will be able to accurately predict the cost or the amount of electricity that must be budgeted at the beginning of every year, "he said.

"The risk of obtaining erroneous prediction will be a big problem for the big six energy companies, so imagine how much risk is magnified for small energy suppliers. Risk That does not exist in the current system of support for renewable energy. "

A new "gas rush", however, would be fatal to the hope of building a low carbon economy in the UK, environmentalists, and could leave consumers connected to a fossil fuel more expensive, with high price increases that may result. British supplies of clean natural gas in the North Sea are running out fast, so that consumers heavily dependent on imports and price volatility arising. Like all new gas plants would be required to perform operations - and CO2 production -. For at least 25 years, it would also be the objectives of the climate change in the UK in the 2020s increasingly difficult to meet

John Sauven, executive director of Greenpeace UK, said: "This is a bill which promises energy omnishambles energy could be a great opportunity for energy bills and carbon emissions under control, and transport safely. our power. But ministers seems to scuttle all these objectives by encouraging a surge of the dependence of burning expensive gas to produce electricity.
"This would increase the burden on families and businesses, and watch the money bills that go to countries like Qatar and Norway, instead of returning to the UK economy ".

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