Ministers’ review into energy bills ‘fatally damaged’ after appointing City wind farm backer as adviser – Telegraph

Christopher Hope

A Government review into soaring energy costs is “fatally damaged” because
it has appointed a City adviser who makes money from energy schemes that
are blamed for keeping bills high, it was claimed last night.

Richard Nourse, who was appointed to the five strong advisory panel
advising Professor Dieter Helm on Greg Clark’s energy review earlier this
month, is now under pressure to quit.

The review was set up last week to “deliver on Government’s commitment to
consider how to keep energy costs as low as possible”, a commitment in the
Tories’ manifesto.

Theresa May, the Prime Minister, had backed an energy cap before the election.

Mr Nourse is managing partner of Greencoat Capital, which is the official
investment manager of Greencoat UK Wind plc, a £910million fund which owns
shares in some of the UK’s biggest windfarm projects.

Earlier this month Greencoat UK Wind announced a £68million deal to
increase its stake in the 350 megawatt Clyde wind farm, one of the biggest
in the UK.

Greencoat UK Wind plc’s 2016 annual report makes clear that any fall in the
price of electricity will damage the company’s financial prospects.

It says that “other things being equal, a decline in the market price of
electricity would reduce the portfolio companies’ revenues.

“Approximately 40 per cent of the Group’s revenues are exposed to the
floating power price”.

It also warns that “a longer period of power price decline would materially
affect the revenues of investee companies”.

The review is being led by Dieter Helm, an Oxford academic and critic of
wind and solar power, and has a five-strong panel advising it.
Professor Dieter Helm

It has already been criticised after the Government said the review would
not be allowed to suggest changes to green taxes.

These green levies which subsidise wind and solar power are blamed by
leading energy suppliers for adding £150 to every power bill.

David Green, director of the right of centre thinktank Civitas, said Mr
Nourse should stand down or risk leaving the review’s legitimacy “fatally
damaged”.

He said: “The normal understanding for all independent enquiries is that
they should seek the truth without fear or favour.

“People with a direct financial interest should be asked to give evidence
as interested parties. They should not be official advisers.

“This review has already been severely compromised by the Government’s
decision to exclude some of the most important questions from its remit,
and if Mr Nourse is allowed to continue as a panel member its legitimacy
will be fatally damaged.”

Mr Nourse defended his role in the panel which also includes former Tory MP
Laura Sandys and Terry Scuoler, chief executive of EEF, which was formerly
known as the Engineering Employers Federation, said that he had declared
these financial interests to the Government.

He told The Daily Telegraph: “This is Dieter Helm’s review – I will be
contributing my perspectives as a challenge panel member when they are
sought, not forming conclusions.

“It’s worth adding that I am well known in the sector for emphasising the
importance of the UK securing its energy at the lowest possible cost, all
in the context of meeting our carbon budgets.”

A Government source said: “The reviewer and his team have a breadth of
knowledge and views about different energy sources.

“The panel will meet Dieter three to four times to give their opinions ­
they will not be writing or editing his findings but giving their personal
views.

“The panel is unpaid and we are aware of their business interests.

“Reporting on just one panel member’s interests without looking at the
balancing views of the other members is rather misleading.”

A Business, Energy and Industrial Strategy department spokesman said: ““As
you would expect the panel brings together expertise from across the energy
sector and associated industries.”
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