Green Subsidies Will Continue To Push Up Power Prices For Years To Come

By Paul Homewood

When we talk about the impact of household energy bills of switching from gas to electricity, we need to bear in mind that electricity prices are going to be forced upwards in the next few year by new, subsidised wind power coming on stream.

Currently it is estimated that green levies will increase by a further £2.0bn by 2023/24:

https://obr.uk/efo/economic-fiscal-outlook-october-2018/

On to that we must add the subsidy for Hinkley Point, due to be commissioned in 2025. When fully operational, this will add another £1.4bn.

These increases will add about 7% to household electric bills, making the switch more painful still.