The Renewable Energy Foundation (REF) says domestic consumers shouldn’t pay more for the EU’s renewable targets as it welcomed a new report comparing the UK’s energy and climate change policies.
The study by the Department for Business, Innovation and Skills (BIS) showed the UK’s energy and climate change policies are expensive and damaging to energy-intensive companies compared to other major world economies.
REF said the UK’s 15% renewables target by 2020 is not fair as it is challenging to meet. It also claimed reducing the share of subsidy costs for the industry by increasing the load on other consumers, as is done in Denmark, is not effective.
Dr Constable, Director of the REF said: “Subsidising renewables to meet arbitrary EU targets is not only economically damaging but also a very ineffective and wasteful way of encouraging the clean energy sector to become competitive.
“A German-style compensation package for industry would just transfer costs onto other consumers. We (the UK Government) need to cut the climate policy costs themselves, which would reduce the burden on all consumers and provide an economically compelling example of low carbon development.”