The transfer of wealth argument more generally is highly pertinent.


1. Those struggling most with their fuel bills pay the highest rates, especially if they get into debt and are put on a pre-payment meter.

2. Temporary 'energy welfare payments' to energy intensive businesses (a social policy after all) are being funded by a regressive levy to utility bills rather than through general taxation which is raised more progressively.

3. Several of the big six have been fined for not rolling out insulation to vulnerable fuel poor households quickly enough. Many companies have just sat on money provided for this purpose. This money was supposed to tackle the wealth transfer argument.

4. The subsides are not determined competitively since all technologies are treated differently with their own fixed subsidy price set centrally by DECC and the Treasury. The capacity market can be seen to have a competitive bidding system, but overall the costs have gone up without significant new assets being brought on stream as was hoped.

5. In this regime Community Energy initiatives are now being strongly discouraged even though they are perhaps more morally defensible for subsidy than other government market interventions.

 

James

The transfer of wealth argument more generally is highly pertinent.


1. Those struggling most with their fuel bills pay the highest rates, especially if they get into debt and are put on a pre-payment meter.

2. Temporary 'energy welfare payments' to energy intensive businesses (a social policy after all) are being funded by a regressive levy to utility bills rather than through general taxation which is raised more progressively.

3. Several of the big six have been fined for not rolling out insulation to vulnerable fuel poor households quickly enough. Many companies have just sat on money provided for this purpose. This money was supposed to tackle the wealth transfer argument.

4. The subsides are not determined competitively since all technologies are treated differently with their own fixed subsidy price set centrally by DECC and the Treasury. The capacity market can be seen to have a competitive bidding system, but overall the costs have gone up without significant new assets being brought on stream as was hoped.

5. In this regime Community Energy initiatives are now being strongly discouraged even though they are perhaps more morally defensible for subsidy than other government market interventions.

 

James