The energy bill: what’s the real cost?

Before the end of this month, the Coalition will publish a new Energy Bill, which sets out its strategy for UK ‘energy futures’. Paul Dorfman has an idea who is likely to reap the highest benefits and guess what? It's not you or me ...

The Department of Energy and Climate Change (DECC) has been relentlessly optimistic about its Electricity Market Reform plans for the Energy Bill, despite strong and sustained criticism from a scientific advisory Committee on Climate Change, a Parliamentary Select Committee on Energy, and more recently, a House of Lords Working Group who have all concluded that the reforms are ‘unworkable’.

UK energy deal triples renewable subsidy by 2020

British government support for low-carbon electricity generation will triple by 2020 after the energy and finance ministries reached a deal to end months of wrangling over costly reforms.

The move is expected to boost the share of renewables in Britain's energy mix to 30 percent by 2020, outpacing European Union targets of 20 percent, while creating tens of thousands of new jobs.

Onshore wind subsidy lowered by 10%

The subsidy for onshore wind energy generation is to be cut by 10%, the government has announced.

The Treasury is thought to have favoured a larger cut of up to 25%.

It is one of a number of cuts which the Department for Energy and Climate Change said should encourage up to £25bn in new investment in energy generation between 2013 and 2017.

The measures should also reduce the impact on household energy bills, it said, saving £5-£6 a year on average.

New tax break strategy for green energy

If you can't beat Big Oil, join 'em. That's part of a pragmatic new green energy strategy that seeks tax breaks for renewable power that were once limited to fossil fuels and biofuels.

Energy experts view the effort as a realistic approach to Congress' partisan gridlock. Demands to kill all tax subsidies for oil, gas and coal are out. Attempts to extend those subsidies throughout the entire energy industry are in.