Financial Times FT.com

Inflated energy bills fail to boost market

By Fiona Harvey and Rebecca Bream

Published: February 3 2008 21:56 | Last updated: February 4 2008 13:50

The subsidy system supporting wind farms in the UK is one of the most expensive in Europe, according to research by the European Commission. Only Italy’s system, which is of a similar style to the UK’s “renewables obligation” or RO, gives renewable electricity companies a greater expected profit.

The subsidies come not from the taxpayer but the electricity consumer, adding £1bn a year to electricity bills by 2010, rising to £3bn by 2020. But although the subsidies are intended to increase the amount of electricity produced from renewable sources – of which wind is one of the cheapest and most mature – fewer new wind farms are being built, owing to planning restrictions.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this