Lord Stern Says That Energy And Media Companies 'Mislead'
By Cynthia Taylor
Lord Stern, the former head of Government Economic Service said that the Climate skeptic newspapers were conspiring with the energy companies in a campaign that delivers misinformation on energy bills.
He has said that the purpose of this is to shift the blame onto green taxes.
He went on to say that it was clear that the real culprit with regard to increased bills was the soaring gas prices.
The costs of energy has been highlighted with SSE’s announcement of 8.2% increase, and have blamed part of the increase is taxes that support green renewable energy.
Campaign that is misleading
In an Influential Global Review, of the Climate Change Economics, Lord Stern they were wrong about the UK’s dependence on fossil fuels and that they have generated ¾ of the increase were costs to households.
He continued that less than 1/5th of the £70 was from green taxes, and that most of that goes towards helping poor families to insulate their homes.
Reporting to the BBC News, Lord Stern said that there was a concerted campaign that is misleading the British Public about what factors that were driving up consumers gas and electricity bills.
He has warned that should the campaign succeed in their efforts to cut support for renewables, then consumers could face higher future energy bills as the costs of fossil fuels continue to increase.
Think tank IPPR, who are a left thinking organisation, said that 6% of the price rise from SSE was caused by increased government green taxes.
RegenSW, a renewable agency, said that the green taxes on energy, represented less than 3% of an average duel fuel bill.
The Nuclear bill
It is claimed that the UK was spending £2.3 billion annually on the nuclear ‘clean-up’ and that the final clean up bill is expected to top £100 billion.
Renewable supporters point out that the government was about to make an announcement for a long-term support deal on price for EDF’s Hinkley C nuclear station that is planned. They say that the price is reportedly to be roughly double the market rate at present, for electricity which will lock the price for 35 years.
Lord Stern has said that fossil fuels will continue to rise therefore, support for renewables should actually make energy bill cheaper in the long run.
Lord Stern also warned people who are hopeful that shale gas would bring the prices of energy bill down. He said that the domestic supplies of shale gas was unlikely to make any appreciable difference to fuel bills, because he felt that the UK was unlikely to have sufficient reserves to be able to reduce the European gas prices, which is what determines the wholesale gas prices. He also felt that it will take many years to exploit this sector.
Shale gas supporters argue that the exploitation of the UK's shale gas resources will be generating revenue for the government and that this will potentially reduce taxes for individuals.
They believe that it will be more reliable and cheaper over the medium term and will keep the UK largely powered by gas.
Head Office: EATON HOUSE, STATION ROAD, LEEDS, LS20 8XB Company Registration: 4704157 Vat Registration: 817013852