Its the gas price, stupid!

Following SSE’s announcement of energy price increases averaging 8.2% for its customers, the usual round of political finger pointing was in full evidence with climate-change-deniers and fossil-fuel-lobbiests all wading in.

The age old lie? That renewable energy and green policy is to blame. But is it?

SSE’s figures show that the price hike will average £93 a year for a typical household. Of that, £23 is due to increases in wholesale energy prices, £28 for re-investment back into the grid infrastructure and smart metering, £5 in VAT, £15 in “green taxes” and a remaining £23 which is “unaccounted” for bit includes SSE’s profit.

Official figures from OFGEM show  that support for renewables has added £15 to the average household annual energy bill of which on-shore wind accounts for just £4.68. In addition Government subsidy for most forms of renewable energy have been or are being cut significantly.

Gas prices have added over £120 per year per household.

With an ageing number of nuclear and dirty coal power stations being decommissioned and the Government hoping a second dash for gas to fill the gap, its no wonder they are so keen for fracking to be successful. Without fracking the UK will need to import ever more expensive LNG (liquid natural gas) in competition with global markets.

Over the forthcoming decades the increasing price of fossil fuels will  become an ever increasing financial burden on the UK, unless we act to reduce our dependency.