Green Lies – The Fossil Fuel Subsidy

New interpretation of subsidy by Damian “Head of Environment” Carrington, if items that are essential to life are VAT rated at 5% then they are subsidised, especially if they are fossil fuels.

As the public knowledge about the real cost of renewable energy has grown, so too, have the attempts by the Greens to hide the real cost of their renewable energy boondoggle, which continues to take money from the poor and give it to the rich, wind turbines really are an inflation proof cash machine that pays out vast sums of money.

On February 27th this year, Damian Carrington at the Guardian claimed  to have discovered new data which showed that fossil fuels got roughly 5 times the amount of subsidy (£3.63bn) in 2010, when renewables only got £0.7bn for the same period.

One of those figures is true, the other is a complete fabrication arrived at by comparing something that has never existed, fossil fuel subsidies, with something that does, renewable energy subsidies.

A report by Stuart Young Consulting for Communities Against Turbines Scotland has this to say in the Executive Summary:

The claim in the Guardian article has no substance or merit. It is disingenuous, totally misleading and is
predicated upon a highly inventive and dubious notion of “subsidy”.

The £3.63bn “fossil fuel tax breaks” referred to in the article turn out to be an imaginary relief on a level of
taxation on domestic fuel which never has and almost certainly never will be levied.

Lets examine Carrington’s fossil fuel tax breaks in greater detail, the Government taxes items essential to life at lower rates of VAT, 0% for food and water, 5% for electricity and gas used for cooking and to keep warm.

To say that had VAT been levied at 20% on fossil fuels, then £3.63bn in taxation would have been raised, and ergo that is a subsidy is patently ridiculous, made all the more so by Carrington failing to add the taxation lost on renewables not paying VAT at 20% to the £0.7bn in the subsidies they received in 2010.

On the other hand, the £0.7bn subsidy to wind with which it was compared is indeed a true subsidy to assist an
unreliable technology which is likely to rise to at least £1.06bn for 2012, and to which a further £0.72bn subsidy
to other Renewables and an unknown sum for Feed-In Tariffs need to be added.

• One thousand seven hundred and eighty million pounds subsidy to Renewables in 2012
• Ultimately paid for by the 66 million people of UK
• £27 per head of population or £65 per household
• Excluding the cost of the Feed-In Tariff
• Subject to VAT at 5%
• (and to your electricity supplier’s profit margin)

The bill payers get to pay VAT on top of the energy bill increases to support the Green taxation, and the electricity supplier gets to make a profit on the Green taxation we all pay for, self serving boondoggle really does sum this up.

The second last column of this table lists the total generation by each technology over the preceding 24 hours.
The output figures for wind have to be treated with caution as National Grid can only meter 4686MW capacity
of wind generation whereas Renewable UK’s website http://www.bwea.com tells us that at 18th August 2012,
there was 6851MW connected windpower.

The calculation below has therefore used an adjusted wind output figure of 21635MWh for the 24 hour period. See Appendix 2.
Assuming the value of a Renewables Certificate to be £45, in the 24 hours ending at 1145 GMT on 21st August 2012:

• Wind generated 21.6GWh of electricity and received a subsidy of £1.24 million
• Oil, gas and coal generated 531GWh of electricity, and required no subsidy at all.

You can view and download the entire report in PDF format by clicking the link Coal gas and oil subsidy

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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 September 13, 2012, in Anthropogenic Global Warming, Church Of Climatology, Climate Change, Global Warming, Green Jobs Lie, Green Lies, Green Taxation, Renewables, Wind Power and tagged , . Bookmark the permalink. 2 Comments.

  1. If VAT was charged at 20%, the consumer would pay it anyway. A subsidy is something that would be paid to the energy company.

    Still we cant really expect a Grauniad hack to understand how the real world works.

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