Which? questions value of renewable subsidies

Which logoConsumer group Which? has warned the UK Government that its flagship Contracts for Difference (CfD) subsidies scheme will not provide value for money.

In a letter to Energy Secretary Ed Davey seen by The Guardian newspaper, Which? warn that the plans would favour high-cost offshore wind farms rather than cheaper sources of energy. The organisation wants to see the coalition government introduce competition between different types of power generation, not just between companies.

Which? questioned how there could be any competition over the price of offshore wind under the current proposals.

Richard Lloyd, Executive Director at Which?, said: “It is vital that any measure that adds costs to consumers’ bills is closely scrutinised at a time when energy prices are the top financial concern for consumers.

Whilst there has been a lot of welcome attention given to tackling the immediate cost of energy bills, Which? believes that more attention needs to be done to address energy costs in the long term.

“The absence of full competition from the CfD process at the outset risks priority being given to investment that may not deliver value for money for customers.”

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