The Conservative Government are about to add an average of £38 to every annual household energy bill.
The Capacity Market will hand millions of pounds to the Big Six energy firms which the Government claims will “incentivise investment in more sustainable, low-carbon electricity capacity at the least cost for energy consumer”. However, critics of the Capacity Market says the system has been so badly designed that the extra cash will only contribute to the profits of the Big Six, rather than resulting in new, lower carbon power stations.
Lisa Nandy MP, Labour’s Shadow Energy & Climate Change Secretary, said:
“The Tories are trying to bury this bad news. Every family’s energy bill is to shoot up to pay for these gross new handouts to the big energy companies. The worst part is that this scheme is a massive waste of money. It has been so badly designed it isn’t getting new power stations built but instead is just lining the pockets of the Big Six and investors in highly-polluting diesel generators”.
However, Amber Rudd, energy and climate change secretary said that the government would “protect consumers and businesses from avoidable spikes in energy costs”.
The information becomes confusing for consumers after National Grid predicted just last month that there would be a surplus of electricity in the Summer which could result in it implementing emergency powers to switch power stations off. The government is also likely to come under fire after reducing funding for green energy schemes and ending the Green Deal.
How about removing all VAT from energy efficient LED lightbulbs to encourage small businesses and home owners to switch. It would be a start.