Has The CfD Scheme Reduced Electricity Bills?

By Paul Homewood

 

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https://www.gov.uk/government/publications/contracts-for-difference/contract-for-difference

We keep being told that the CfD scheme is in the consumers’ interests. And, to be fair, it has helped to partially protect consumers from recent market prices rises.

However, the reality is that this has made little difference to our electricity bills.

Figures for last month, up to the 25th, from the Low Carbon Contracts Company show that renewable generators have handed back just £19.5 million to the government. This represents the amount by which their actual revenue has exceeded what the strike prices would have yielded, and is returned to bill payers.

Average market prices have worked out at £173/MWh, versus an average strike price of £159/MWh.

Strike prices for offshore wind have averaged £170/MWh.

OK, £19 million a month is better than a kick up the Khyber!  But since the CfD scheme began in 2016, SUBSIDIES to renewables have totalled £5966 million, all of course paid for in our electricity bills.

Hardly the Deal of the Century!

via NOT A LOT OF PEOPLE KNOW THAT

https://ift.tt/3WIKslk

May 6, 2022 at 11:46AM

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