The claim by Sir Keith Starmer that “the transition to clean British energy means cheaper bills for every family” is incorrect as the Labour leader, just like Leah Gunn Barrett (Letters, 11 October) fails to recognise that, in historic terms, electricity has always been three times more expensive than gas. Readers can check their energy bills to confirm.
Thus, when the renewable sector claim that the generation cost of electricity is less expensive than gas, that may well be a true statement but, unfortunately, there is no mention of the cost of transmitting the energy, distributing it to the consumer, the bill for staff wages, payment of rates to local councils, contributing to the Green Levy and VAT payments to HMRC.
That means that the generation cost of electricity is only 35 per cent of the bill with the additional costs adding a further 65 per cent to the consumer.
Hence, if the renewable plant generates output at 5.5 pence/unit, the unit cost to the consumer is around 16.5 pence/unit meaning the average annual use of 15,000 units will be about £2,500, and adding the standing charge will bring the yearly total to nearly £3,000.
This means the days of annual dual fuel bills of £1,000 are over and energy has entered the era of being unaffordable for those in fuel poverty which means that both Westminster and Holyrood must revisit the warning given by the CEO of Scottish Power in 2019 that “renewable energy will be too expensive and a subsidy scheme will be required to make the product affordable to those on low incomes”.
Ian Moir, Castle Douglas, Dumfries and Galloway
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