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Transparency needed Over £123billion Decarbonsing Costs

Tuesday, January 3, 2017

 

It may well be that when the full costs of decarbonising the economy are laid bare, paying for them out of general taxation is actually the fairer way to proceed says GMB.

GMB, the union for workers in the energy sector, is calling on the UK government to commit itself to complete transparency, efficacy, value for money and equity on all of the costs associated with decarbonising the economy and to commission a review of the cost effectiveness and fairness of the policies being pursued, including whether these cost should be paid for from general taxation rather than levies on consumer bills.
 
The call for transparency comes after the GMB researchers were unable to establish how much the full costs arising from the implementation of the Climate Change Act 2008 are.
 
GMB was able to establish that if the £6.76 billion cost identified in 2015 by the Committee on Climate Change, an independent statutory body, was to recur until 2030, then the total cost would be £123.6 billion.
 
However GMB has been unable to put figures to the other items which will increase the overall cost, including carbon taxes, emissions permits, capacity auction costs, renewable levies or any indirect costs associated with decarbonising the economy.
 
GMB researchers concluded that the figure is likely to be much higher than the £123.6 billion identified.
 
Set out in the table below are the total costs to 2030 if the £6.76 billion is used to calculate the cost per household of £240 and then multiplied by the increase in number of households.

 

Public sector / consumer expenditure on meeting carbon budgets

Total households

Cost per household

2014

£6,760,000,000

27,214,168

£248

2015

£6,827,093,343

27,484,270

£248

2016

£6,896,053,910

27,761,889

£248

2017

£6,962,608,722

28,029,823

£248

2018

£7,028,416,844

28,294,751

£248

2019

£7,093,380,157

28,556,278

£248

2020

£7,156,355,525

28,809,802

£248

2021

£7,218,802,794

29,061,200

£248

2022

£7,279,954,906

29,307,384

£248

2023

£7,340,584,384

29,551,464

£248

2024

£7,401,416,308

29,796,359

£248

2025

£7,461,363,183

30,037,691

£248

2026

£7,522,261,429

30,282,853

£248

2027

£7,582,427,393

30,525,067

£248

2028

£7,641,862,067

30,764,337

£248

2029

£7,700,057,473

30,998,618

£248

2030

£7,757,658,955

31,230,508

£248

 

£123,630,297,392

 

 

 

 

 

Justin Bowden, GMB National Secretary for the Energy Sector said:

“Every single household in Britain has an energy bill to pay and for very many people it already represents a significant part of their monthly spend.

“Loading the costs of decarbonising the economy onto individual bill payers is highly regressive and will hit those who can least afford it the hardest; we are talking thousands of pounds extra on the bills of every house in Britain over the coming decade and a half.

“Given the eye-watering amounts of cash involved, UK energy bill payers have a right to demand complete transparency over all aspects of the decarbonising costs arising out of the 2008 Climate Change Act. It must also be established whether or not the costs represent value for money, efficacy and - above all - if they are going to rack up even further as seems likely.  

“It may well be that when the full costs of decarbonising the economy are laid bare, paying for them out of general taxation is actually the fairer way to proceed."

END

Contact: Justin Bowden, 07710 631 351

Notes to editors:

1 The £6.76bn comes from £360m of Public Sector Expenditure on research and development and £6.4bn on current government support for roll-out. These figures are on page 37 and 38 of the Committee on Climate Change report ‘Meeting Carbon Budgets – Progress in reducing the UK’s emissions’ June 2015 Report to Parliament: www.theccc.org.uk/wp-content/uploads/2015/06/6.737_CCC-BOOK_WEB_030715_RFS.pdf

2 Household projections data available from Department for Communities and Local Government: www.gov.uk/government/statistical-data-sets/live-tables-on-household-projections

Picture copyright; Walter

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