UK power companies make billions by ramping up the“daily standing charge” to pay for “mad Milliband’s “net zero” lunacy
PETER HALLIGAN
Household energy bills are up from £800 to £11,800 since 2006 – increases in “standing charges” of 52 pounds a year will be increased to 120pounds a year by 2030 –
““But this figure is predicted to surge to £93 by next April and more than £120 by 2030, he calculates. The cause? “Put simply we are about to build a lot more transmission, mostly to connect more offshore wind,” he says.”
Those standing CURRENT AND PROJECTED standing charge estimates are false – MALINFORMATION!
I pay 44 pence Per DAY for the supply of electricity and 33 pence for gas – a total of 77 pence PER DAY – £281 A YEAR
Make no bones about it, this is yet another a tax increase to fund government “policy “on net zero.
From here:
The power companies cashing in on Miliband’s net zero blitz
Three companies – regulated by an 8-man “quango, OFGEM, can levy standing charges that feed straight into profits.
Here’s a few numbers:
“In the half-year to September, National Grid recorded a 26pc rise in statutory operating profits from its UK transmission business, rising from £642m to £810m.
Similarly, SSE’s operating profits from its transmission business rose from £158m to £292m over the same period, while Scottish Power’s network pre-tax earnings increased 23pc to £1.2bn.”
“What makes electricity transmission so profitable? These companies have a simple-seeming job: to manage the pylons, cables and substations that carry electricity from generators like power stations and wind farms to the nation’s energy-hungry towns and cities.
“Back in early 2024, before the general election, transmission companies were expecting to add about £4.5bn a year to the nation’s bills for the period 2025-30, largely in keeping with previous years.
“Last August, however, new post-election figures showed the forecast had been ramped up to £7.7bn in 2026-27 alone, rising to £12bn by 2030-31 – a staggering increase. The massively revised estimate reflected Miliband’s decarbonisation plans.
The three power companies have massive construction plans – that must be paid for by consumers/taxpayers:
“SSE, for example, plans to spend £32bn stringing pylon lines and substations across northern Scotland over the next five years. They include the controversial pylon lines around Beauly, Spittal and Peterhead, plus subsea cabling from Caithness to Aberdeen.
“Similarly, Scottish Power wants to spend more than £11bn on infrastructure, including a dozen new high voltage substations and 450km of upgraded overhead lines. It is also involved in the £2bn Eastern Green link project to lay a 196km subsea cable from Torness to Co Durham.
“National Grid’s “Great Grid Upgrade” is the most ambitious of the lot – and the most controversial. It wants to spend £35bn between now and 2031 on infrastructure, including 25 new substations and 1,000km of new high-voltage cables.”
78 billion pounds on the transmission and production of energy from OFFSHORE WIND – which as discussed here is NINE TIMES more expensive than natural gas:
UK energy bills will increase by almost 80 billion pounds A YEAR – to fund useless and inefficient electricity generated by offshore wind – wind turbines that last 15 years and work around a quarter of the time.
“Why, though, are the transmission companies so keen to expand their infrastructure? It’s not often that UK industry follows government policy so eagerly.
The answer lies in the way they make their profits, typically earning rates of return of up to 7-8pc against the value of their capital assets. That simple equation means that the more money a transmission company has invested in pylons, cables and substations, the more profit it can generally make.
“Mr Miliband’s Department for Energy Security and Net Zero (DESNZ) says it’s part of Ofgem’s role to ensure energy companies stay solvent, which is why they need guaranteed income. A spokesman says: “Ofgem must ensure that transmission companies are financially resilient while also having the investment needed to strengthen our energy security. Its price controls ensure value for money.”
Insanity, Folly and corruption.
Onwards!!!
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This article (UK power companies make billions by ramping up the“daily standing charge” to pay for “mad Milliband’s “net zero” lunacy) was created and published by Peter Halligan and is republished here under “Fair Use”
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