Double whammy from green taxes: Families will have to pay more for fuel and flights

  • One in three households will face fuel poverty if Government does not back a new era of nuclear power, says leading expert

By
Sean Poulter and Kirsty Walker

Last updated at 2:53 AM on 3rd January 2012


Tim Knox, described the current policy of adding hefty green taxes to bills to fund a move to wind energy as 'incoherent'

Tim Knox, described the current policy of adding hefty green taxes to bills to fund a move to wind energy as ‘incoherent’

Britons face soaring costs for fuel and family holidays as a result of green taxes, experts warn today.

A leading energy analyst has predicted that one in three households will face fuel poverty if the Government does not back a new era of nuclear power.

In a separate report, think-tank Civitas says that environmental charges imposed on airlines by Brussels from this week mean that a family of four will have to pay an extra £130 for return flights to the U.S. by the end of the decade.

The fuel poverty claim is made by Tony Lodge, a former adviser to the Conservatives, in a report from the Centre for Policy Studies.

He warns that failure to build new atomic plants will leave the country reliant on expensive foreign gas; the expense of importing this would then be passed on to customers through higher fuel bills.

Britain’s existing nuclear power plants are due to close within a few years.

As a result, the country’s nuclear capacity will fall by  75 per cent.

A number of coal-fired plants are also set to shut, as the Government strives to meet EU targets for reducing carbon emissions.

Wind farms – funded by green taxes on homes and businesses – will not be able to cover the resulting energy shortfall, Mr Lodge warns.

He says that without more nuclear power plants, the UK will be dependent on gas for over 80 per cent of its electricity by 2025. Most of this would come from Russia and the Middle East.

Mr Lodge, a CPS research fellow, argues that the cost of the imported gas, and the electricity it would produce, would be so high that more than 8.5million families would be forced to choose between heating and eating as energy bills rise.

Government plans to penalise power firms that use coal to generate electricity – by imposing minimum prices – will effectively make it uneconomic to continue mining in the UK.

This ‘will result in over one billion tonnes of economically recoverable UK coal reserves becoming stranded’, Mr Lodge says.

Warning: Wind farms funded by green taxes on homes and businesses will not be able to cover an energy shortfall

Warning: Wind farms funded by green taxes on homes and businesses will not be able to cover an energy shortfall

He adds that the Government is doing too little to either promote new nuclear plants or give firms interested in building them guarantees about future income.

The CPS study, titled ‘The Atomic Clock – How the Coalition is Gambling with Britain’s Energy Policy’, is released today.

It warns: ‘Britain risks becoming yet more dependent on foreign gas and unmanageable renewable energy to generate electricity. 

‘Consequently, Britain’s 26million households, who spend around £20billion a year on energy, will face higher bills at a time of falling household income.’

The director of the CPS, Tim Knox, described the current policy of adding hefty green taxes to bills to fund a move to wind energy as ‘incoherent’.

‘Unilateral energy taxes, delays to new generating plants and a lack of generation diversity will drive up costs,’ he added.

The Civitas report, also released today, focuses on the EU Emissions Trading System, which is designed to curb carbon dioxide emissions from aircraft engines. The directive came into force on January 1.

The think-tank found that related charges will cost airlines £1billion a year – most of which will be passed on to businesses and consumers through higher prices.

Airlines are now required to buy a ‘permit to pollute’ to cover the cost of their carbon emissions – with extra fees for those who exceed their emissions limit.

But in a damning assessment, Civitas  researcher David Merlin-Jones says  the scheme will line the pockets of energy bosses and banks while doing little to help the environment.

The report states that the emissions trading scheme ‘fails on both counts: it provides only marginal emissions reductions and at a high cost to businesses and consumers’.

It continues: ‘The EU ETS pushes up energy bills, increasing fuel poverty,  while power companies make billions in windfall profits.

‘Vested interests have all but paralysed the effectiveness of EU ETS, with banks making billions out of playing the carbon credit market.’

Here’s what other readers have said. Why not add your thoughts,
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The comments below have not been moderated.

Never mind when the lights go out Britain can buy its power at inflated prices from Frances nuclear power stations .

Its as though the regime wants to destroy the UK economy, spend/waste all the money, tax people into penury. At the end of this insane self destruction we will be at the mercy of the EU superstate. There is your answer right there isnt it? Or do the political vermin class know something we dont?

Anybody remember the false promises that green energy would be cheap, so how the hell are we paying more for it?

The DM should follow the lead of other media outlets like the BBC and the Guardian and only discuss ideas from this “think-tank” to mock them for their absurdity and bias. It is yet another example of big business trying to tell society what it
– Jon Moore, Liverpool, Liverpool, 03/1/2012
You really are joking! Follow the lead of the BBC and Guardian? Every job at the BBC since Labour last took power was advertised only at the left wing Guardian (a paper with such poor numbers is all but bankrupt)! The BBC’s green agenda led by its own Roger Harrabin (a man who has been shown to be in collusion with the CRU and others for many years now) to be totally biased when reporting on “Green” issues. Notice, you can comment freely here at the D.M. but try a sceptical comment at the Guardian (“Comment is Free”!!!!)and it will be deleted.
You live in a dream world, wake up and open your mind. The scam is out in the ope and we can see the worms in the open can!

The Carbon Credit Scam was always destined to suffer the same fate as the Euro.

My wife and I had a “free” flight to Germany some months ago using my frequent flyer miles. It cost me £400 in airport taxes. How much more do they want. The airline industry must complain about this. Is it the intention of the government to bankrupt the airlines and travel industries? It would appear so.

Why on earth aren’t we building nuclear power plants, proven technology which is green and guaranteed – absolutely pathetic.

A world study by experts into the use of wind turbines have found that they are so grossly inifient they cost money as they produce very little electricity.The only people that are makeng millions are the people that make them and sell them to governments that are silly enough to waste tax payers money.Britain has the largest useage of wind turbines.Possibly the reason being is wind turbine companies in Britain are owned by Tory Party supporters?

there is only nuclear power to meet our needs ,wind power who really believes it,carbon footprint taxes will make millions more unemployed,its A RIP OFF,and millions will die of the cold,they are looney liberal green policies,BARMY

The entire GREEN tax philosophy is absolutely crazy. Whilst we are being levied in UK countries such as Malaysia are shuting down and moth balling Bio Diesel manufacturing plants and storage facilities, countries that should be introducing or complying with emission controls.

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