Is Chris Huhne Telling The Truth About The Real Cost Of Green Subsidies

The real costs of Huhne's Green agenda for wind could be much higher than Huhne claims

There are some questions to be answered about Chris Huhne’s explanation that ever rising prices for gas and electricity are mainly caused by fossil fuel costs, with only a tiny fraction of the increases supporting the massive susbidies taxes on everyone’s energy bills.

Wholesale energy prices peaked in 2008, and then fell back at the end of 2009, retail energy prices however after a slight fall stayed well above the 2008 peak, there were modest increases in wholesale price, last year and this year, but wholesale prices today, are well below the 2008 peak.

Fossil fuel prices have fallen, yet Huhne maintains that ever rising fossil fuel prices are the cause of all time high energy bills:

But retail prices have risen again and are now above their 2008 peak. Despite lower wholesale prices compared with three years ago our fuel bills are higher than three years ago.

So, contrary to the Energy Secretary’s position, higher fossil fuel prices cannot explain our current very high energy bills. And, contrary to the energy companies, they are not merely passing on the extra wholesale costs of energy.

Two further thoughts. It is clear that the energy market is not functioning like a proper competitive market, otherwise retail prices would not just go up in line with wholesale prices but come down too.

And maybe the Huhne green agenda, involving huge subsidies to wind generation, which end up on all our fuel bills, is much larger than we’ve been told.

Huhne is also wrong to assume that fossil fuel prices will always continue to rise, the shale gas revolution in the US is proof of that, where gas prices have fallen on average 15%.

About Tory Aardvark

Climate Realist, Conservative and proud NRA member. I don't buy into the Man Made Global Warming Scam, science is never settled. http://toryaardvark.com @ToryAardvark on Twitter ToryAardvark on Facebook

Posted on October 20, 2011, in Anthropogenic Global Warming, Green Taxation, Renewables and tagged , , , , . Bookmark the permalink. 5 Comments.

  1. Does any politician ever tell the whole truth.. Chris Huhne, is different because he does have his own agenda – he swore to ‘tell a lie the whole lie and nothing but the lie’.

  2. Robert of Ottawa

    Shouldn’t that be more appropriately Attila The Huhn?

  3. The Ofgem web site puts the cost of the renewable obligation scheme, whereby electricity generating companies are mandated to buy a proportion of their electricity from renewables such as wind farms as £1.487 billion! that equates to about £5000 extra for every household in the UK! Energy consultants Ulyx have predicted that further green measures will raise energy bills by a further 58 percent over the next nine years!. The extra costs of the generating companies are inevitably passed on to the consumer. Stop blaming fossil fuels Mr Huhne. It is entirely your fault with your obsession with wind power, wind power which incidently increases carbon emissions(recent research by Kent Hawkins, Canadian engineer, see http://www.masterresource.org)

  1. Pingback: Guardian Greenometer Verdict On The Greenest Government Ever « Tory Aardvark

  2. Pingback: Chris Huhne Disgraced Liberal Democrat Climate Change Secretary Goes To Jail | Tory Aardvark

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