Officials insist they have to act now to avoid blackouts in Britain in the
future
By STEVE HAWKES, Deputy Political Editor
ENERGY bills are set to soar by up to £38 under a new Government levy to
avoid crippling blackouts in 2017.
Ministers were accused of trying to “bury bad news” today by releasing an
official document warning of the upcoming price hike on the day of the
local election results.
The Department for Energy (DECC) conceded that plans to offer the Big Six
‘incentives’ to keep older power plants generating electricity into winter
2017-2018 would cost families dear.
These subsidies are likely to total £3 billion – equivalent to £38 on every
household’s bill in 2018.
Officials insisted the “net” impact would only be £21 because the extra
generation should mean wholesale electricity prices fall.
Shadow Energy Secretary accused the Government of trying to bury bad news WENN
But the Government admitted it was impossible to know if that would happen.
Labour’s Shadow Energy Secretary Lisa Nandy accused the Government of
“liming the pockets of the Big Six”.
She stormed: “The Tories are trying to bury 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 the scheme is a
massive waste of money.”
The move is humiliating for a Government which boasted in 2013 that it was
shaving £50 off bills by axing green levies.
Energy Secretary Amber Rudd in March revealed plans for “capacity auction”
to January 2017 where the Government will guarantee a subsidy to
generators committing to supply the market in winter 2017-2018.
The Government today laid bare the real threat of blackouts unless
companies pump out more power.
Some 2.5 GW of capacity equivalent to four power plants is already due
to close this year.
And plans for a new nuclear power plant at Hinkley Point in Somerset are
still to be agreed with the French energy giant EDF.
Amber Rudd’s department has conceded that plans to offer the Big Six
‘incentives’ will cost families dear Reuters
In the document, the Department for Energy said that without the new
incentives, Britain would suffer a five per cent shortfall in the power
capacity needed to keep the lights on at peak times.
This would result in as many as 38 hours of power shortages, DECC said.
Officials insisted households would face even higher bills unless the
Government acted now.
In a tweet, DECC said: “This is the most cost effective way to guarantee
our electricity needs, protecting against price spikes by securing
electricity in advance.”
A DECC spokesman said: “Our top priority is ensuring that families and
businesses have a secure, affordable, clean, energy supply which they can
rely on now and into the future.”
Average dual fuel energy bills stand around £1,265 unchanged from January
2014 despite sharp falls in wholesale prices.
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