{"id":409170,"date":"2025-10-20T07:17:02","date_gmt":"2025-10-20T06:17:02","guid":{"rendered":"https:\/\/climatescience.press\/?p=409170"},"modified":"2025-12-29T01:16:47","modified_gmt":"2025-12-29T00:16:47","slug":"green-levies-to-blame-say-energy-bosses","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=409170","title":{"rendered":"Green Levies To Blame, Say Energy\u00a0Bosses"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NOT A LOT OF PEOPLE KNOW THAT<\/a><\/p>\n\n\n\n

By Paul Homewood<\/p>\n\n\n\n

h\/t Ian Cunningham<\/p>\n\n\n\n

The Telegraph has finally woken up!<\/strong><\/p>\n\n\n\n

\"Screenshot<\/figure>\n\n\n\n

Household energy bills are on course to rise by hundreds of pounds this decade because of ballooning green levies, the country\u2019s biggest <\/em>gas and electricity suppliers have warned<\/em><\/a>.<\/em><\/p>\n\n\n\n

Senior executives from Octopus Energy, British Gas owner Centrica, E.On, EDF and Ovo urged ministers to urgently address levies that pay for net zero-related costs, which they said are one of the main factors driving bills higher.<\/em><\/p>\n\n\n\n

Speaking to MPs on a Parliamentary committee on Wednesday, Rachel Fletcher, director for regulation at Octopus Energy, said current trends suggest green levies could add around \u00a3300 to a typical household\u2019s electricity bill by 2030.<\/em><\/p>\n\n\n\n

Just hours before energy executives spoke to MPs, Mr Miliband claimed the high gas prices were to blame for the UK\u2019s sky-high electricity prices.<\/em><\/p>\n\n\n\n

But energy bosses warned that net zero levies were becoming so expensive that they <\/em>threatened to push household bills higher<\/em><\/a>, even if gas and power prices fell dramatically.<\/em><\/p>\n\n\n\n

Ms Fletcher, of Octopus, said: \u201cIf we continue on the path that we\u2019re on right now, in all likelihood, electricity prices for a typical customer are going to be 20pc higher in four or five years\u2019 time than they are now.<\/em><\/p>\n\n\n\n

\u201cAnd that\u2019s even if wholesale prices halve. So we completely support the decarbonisation of electricity that will begin to bring wholesale prices down, but the non-commodity costs are adding about \u00a3300 of pressure onto a typical bill.\u201d<\/em><\/p>\n\n\n\n

\"Graph<\/figure>\n\n\n\n

Full story here.<\/a><\/p>\n\n\n\n

I\u2019m not sure why the Telegraph is surprised by this. Despite Miliband\u2019s persistent lies that it is all just \u201cspeculation\u201d, the National Energy System Operator, NESO, themselves told us bills would rise substantially, when they presented him with their Clean Power 2030 report last November.<\/p>\n\n\n\n

This was the report that looked into the feasibility of Labour\u2019s plan to fully decarbonise the electricity system by 2030. Below is the relevant table from that report:<\/p>\n\n\n\n

\"Table
https:\/\/www.neso.energy\/publications\/clean-power-2030<\/a><\/figcaption><\/figure>\n\n\n\n

Ignore their claim that generation costs will fall \u2013 I\u2019ll come to that next.<\/p>\n\n\n\n

But they do say that all the other, non-generation costs would rise by \u00a325\/MWh, which is equivalent to a 10% increase on bills or \u00a37.5 billion a year.<\/p>\n\n\n\n

Much of this extra cost will go to paying constraint payments to wind and solar farms, paying them to switch off when there is too much wind and solar power on the grid.<\/p>\n\n\n\n

Currently these payments only go to remote wind farms in Scotland, because the transmission capacity is not big enough there to bring the power south. However, under Labour\u2019s plan to triple wind and solar power, there will be many days when there is more electricity generated than the country can consume.<\/p>\n\n\n\n

NESO calculate that a fifth of all electricity produced will have to be either constrained or exported at a huge loss to the Continent. The latter is unlikely because the Europeans will also have the same problem of too much wind.<\/p>\n\n\n\n

On top of constraint payments, tens of billions will need to be spent building storage capacity and expanding the grid to bring power from Scotland and the North Sea to the parts of the country where the demand is.<\/p>\n\n\n\n

Returning to NESO\u2019s claim that generation costs will fall, this was merely deceitful smoke and mirrors. They have assumed that higher carbon taxes will push up the cost of gas power, which in turn appears to make renewable energy cheaper:<\/p>\n\n\n\n

\"A<\/figure>\n\n\n\n

Excluding carbon taxes, the current cost of gas power is around \u00a350\/MWh, not the \u00a3123\/MWh they claim. Given their own admission that wind and solar cost between \u00a371 and \u00a383\/MWh, it is clear that generation costs will increase, not fall. (Their figure of \u00a383\/MWh is already out of date, as Miliband has offered \u00a3117.MWh for new offshore wind projects in the latest subsidy auction round.)<\/p>\n\n\n\n

Miliband\u2019s spokesman ignored these very real issues raised and instead commented:<\/p>\n\n\n\n

\u201cWholesale gas costs for households remain 75pc higher than they were before Russia invaded Ukraine in 2022, and the main reason energy bills remain high.<\/em><\/p>\n\n\n\n

\u201cThe only way to bring down energy bills for good is by making Britain a clean energy superpower, which will get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power that we control.\u201d<\/em><\/p>\n\n\n\n

Gas prices are certainly 75% higher than a decade ago, but general inflation has also risen by a similar amount. In real terms, gas costs no more now than it used to. Green levies are the reason why electricity prices are so high, not the price of gas.<\/p>\n\n\n\n

Renewable Energy Foundation<\/em><\/strong><\/p>\n\n\n\n

https:\/\/www.ref.org.uk\/ref-blog\/390-uk-renewable-electricity-subsidy-totals-2002-to-the-present-day<\/a><\/p>\n\n\n\n

As Claire Coutinho neatly described in her conference speech last week, Ed Miliband wants to take out a fixed-rate mortgage at 11% interest, because he does not want a variable one at 4%!<\/p>\n\n\n\n

Except that we will pay the bill, not him!<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

UK\u2019s biggest gas and electricity providers urge ministers to address ballooning net zero costs<\/p>\n","protected":false},"author":121246920,"featured_media":409178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691824443,691829913,691831484,691818346,691818154,691819094],"class_list":{"0":"post-409170","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electricity-bills","9":"tag-energy-industry","10":"tag-energy-secretary-ed-miliband","11":"tag-green-levies","12":"tag-net-zero","13":"tag-renewable-green-energy","15":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/10\/AQMQ3EXQfDoTnaSSZxgBP8_3nPUjNg5p18IhIyzgQoxV8oeFHjbc4Kn29vb5H4Yx_rDijRixEDc2GSownyspY1Km42glN_JWqcOoKsPoI5C2pmWAx2EsggrctUBQnW6x8yD0gZHwqh1U432ZwU801XoDgh09gg.jpeg?fit=1280%2C1280&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1Irw","jetpack-related-posts":[{"id":264116,"url":"https:\/\/climatescience.press\/?p=264116","url_meta":{"origin":409170,"position":0},"title":"Rishi Sunak to Hit Households With \u00a3170 Net Zero Levy Within Days","author":"uwe.roland.gross","date":"27\/06\/2023","format":false,"excerpt":"Households will pay a \u00a3170-a-year Net Zero levy on energy bills in the coming days, with Rishi Sunak and Jeremy Hunt accused of \u201cslyly\u201d shifting costs back to consumers. 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