Despite the DECC's continued reasoning that the proposed fits reductions are "to keep bills as low as possible for hardworking families and businesses" DECC figures show that increased renewable generation is having little bearing on energy prices.
Figures released by the Department for Energy and Climate Change yesterday show that soaring renewable energy generation in the UK is having little impact on consumer energy price indices.
The figures are contrary to government reasoning behind substantial cuts to the small-scale feed-in tariff and early closure of other renewable energy support mechanisms, which has been to protect consumers from rising bills.
DECC’s statistical releases showed that while renewable energy generation soared to just under 20TWh in Q2 2015 – an increase of more than 50% on the 13.2TWh recorded in Q2 2014 – the consumer energy price index has remained largely stagnant over the past year.
The government has repeatedly asserted that its “big reset” of renewable energy policies has been to prevent consumer energy bills from skyrocketing as the Levy Control Framework bill increases, much to the ire of the renewables sector. An impact assessment attached to proposals to slash the feed-in tariff by 87% revealed that the substantial cuts would only save the average household £6 per year on energy bills.
Friends of the Earth's Alasdair Cameron said that the statistics had "put lie to the government's narrative" and claims that renewable energies were pushing up bills.
"Renewable energy has been shown to lower wholesale costs, and in the long term will likely lead to much lower bills. That why a host of other countries – from Denmark to China and the USA are trying to forge a renewable future.
"Sadly the huge progress the UK has made in going renewable is under threat, as government attacks on solar and wind threaten to leave the country trailing the rest of the world," he said.
Source: Solar Power Portal http://www.solarpowerportal.co.uk/news/eco_nrg_solutions_lands_housing_developer_supply_deal_4389
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