Thomas Paine

Thomas Paine
"These are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman."

Saturday, 26 November 2016

Renewables levy cap on consumer energy bills 'exceeded by £1bn'

From the Guardian - official review finds failures in Levy Control Framework and says overshoot will have to be paid for by households

"Former energy ministers have contributed to an overspend of more than £1bn on renewable power subsidies that consumers will be forced to pay for, a government report has said.

The review by the Department for Business, Energy and Industrial Strategy, published on Friday, says “political unwillingness” to curb support for solar and wind power projects has contributed to the cap on green energy subsidies being breached.

The report concluded that the failure to stay under the cap was partly a result of “group think” at the department and its external consultants. It also blamed a lack of transparency, forecasting being left to junior staff, and “insufficient” monitoring that meant the overspend wasn’t detected until “too late in the day”.

Those weaknesses were compounded, it said in an apparent reference to the then Liberal Democrat energy secretary Ed Davey, by “a political unwillingness to withdraw popular schemes even when, as has happened with RO and FIT [two of the renewable energy subsidy schemes], a surge in demand is threatening the overall budget”.

The Levy Control Framework caps the amount of money that the government can levy each year on household energy bills to pay for a series of renewable energy subsidy schemes.

The full article can be read here.

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