By Andrew Argo
Scottish economist Tony Mackay said the massive subsidies for onshore
windfarms produced “supernormal” profits for Scottish businesses and
landowners.
The costs of the “unnecessarily high” payments have been borne by
electricity consumers through higher bills, he believed, and the UK
Government is right to reduce them.
Mr Mackay was commenting on the eve of Scottish Energy Minister Fergus
Ewing chairing a green energy summit on the impact of UK Government plans
to end onshore wind farm subsidies.
UK Energy Secretary Amber Rudd said ending the scheme meant energy bills
would not need to rise, but Mr Ewing accused the Conservatives of ignoring
Scottish concerns.
The Scottish Government said the plans will disproportionately affect
Scotland, which has about 70% of the UK’s onshore wind capacity and
proposed projects.
Industry body Scottish Renewables has warned that the change could put up
to £3 billion of investment and 5,400 jobs at risk.
Describing the system of windfarm subsidies as a shambles, Mr Mackay said
subsidies were unusually offered for schemes’ operating costs and revenue
unlike most subsidies which went towards capital investments.
After a number of feasibility and economic impact studies, the economist
had come to the indirect conclusion that the subsidies have been 2.8 times
higher than required to meet the objectives of more wind energy generation.
“The result is that some people have made, or will make, extraordinary
profits from windfarms in Scotland,” he said.
The main beneficiaries of the “supernormal profits” have been the large
companies such as Scottish Power and SSE, he added.
He believes electricity bills in Scotland are about 10% higher than they
would be without the subsidies, which have also produced a backlash from
environmentalists opposed to the growth of windfarms.
He said the UK Government’s proposed changes were “a sensible step
forward,” and he hopes they will result in lower electricity prices for
Scottish consumers.
2 Comments