UK renewable energy mandates will make for steep energy price hikes
A recent Ernst & Young study is stating that mandates for minimum levels of renewable energy will add as much as 20% — or over £ 200 (approx USD $395) — to annual electricity costs for each home.
Meeting Britain’s renewable energy targets will add significantly to domestic energy bills on top of already steeply rising fuel prices, a report said on Monday.
The report from tax advisory company Ernst & Young comes days after the government called for a 100 billion pound green revolution to get 15 percent of its energy — equivalent to 40 percent of its electricity — from renewables by 2020.
Britain currently gets barely four percent of its electricity from renewables, primarily wind power.
The report said the drive to carbon cutting renewables would add 20 percent in real terms to domestic energy bills by 2020, equivalent to 5.3 billion pounds or just over 200 pounds per household, on top of increases due to booming fuel costs.
Not surprisingly, the article continues by noting that a YouGov survey was conducted to correspond with the release of the E&Y repoort. When asked by surveyors if they were interested in stopping global warming, almost 70% of Britons reported that the would not be willing to pay any additional costs to fight climate change.
This survey finding is strangely familiar to surveys finding similar attitudes in the United States and Europe. As we noted in a May Coalblog post, titled "Poll finds European and American adults unwilling to pay for CO2 reduction," respondents will initially indicate their support for the idea of stopping climate change. However, when provided information on the actual costs of meeting CO2 reduction mandates, strong majorities indicate they will not pay any additional costs to meet those goals.