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Concerns over government's wind farm 'sweetener'

The renewable energy industry has raised concerns over the proposed "sweetener" of higher payments to communities for allowing wind farms in their area.

Wind turbines in Essex. Credit: Nick Ansell/PA Wire

They believe the new measures would make some developments uneconomic and prevent them from going ahead.

The new measures proposed by the Government would demand a five-fold increase in what developers are expected to pay residents for allowing wind turbines in their local area.

A community agreeing to a medium-sized wind farm that might involve around 10 turbines would receive a package of benefits worth £100,000 a year or seeing up to £400 cut from each household's bill.

One scheme, which is already running, has seen residents close to a wind farm in Aberdeen get £122 off their bills.

RenewableUK, an energy trade association, estimates that turbines in the planning system or approved but not yet built could deliver up to almost £150 million to communities.

New rules will give residents ability to stop wind farms

Residents will be able to stop the construction of wind farms under new guidance which puts people's concerns over the need for renewable energy.

As part of a package of measures that will significantly increase the amount of money communities will receive for agreeing to host wind farms nearby, the changes include hundreds of pounds off energy bills for householders.

Tough rules for wind farms: could this mark the end of onshore wind? Credit: Danny Lawson/PA Wire

Energy Secretary Ed Davey said the Government remained committed to "appropriately sited onshore wind" but a Downing Street source said David Cameron felt it was "important that local voters are taken into account."

However concerns have been raised that the new rules will mark the end of new onshore wind, making it harder to build wind farms, with not many communities keen to take up the "sweetener" of payments.

The renewables industry said that the much higher rate of payments would make some developments uneconomic and prevent them from going ahead.

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UK's green energy investment falls to 'seven year low'

UK investment in green energy has fallen to its lowest level in seven years, according to new figures from Bloomberg, reports the Independent.

The figures show that clean energy investment has fallen from £7.2bn in 2009 to under £3bn last year, and is forecast to be below £1.9bn in 2013.

In May 2010 David Cameron pledged that the coalition would be the "greenest government ever".

Which? energy proposal 'not what it says on the tin'

Energy UK, the trade association for the energy industry, has said that Which?'s proposal for a new energy tariff "is not what it says on the tin"

Energy UK chief executive Angela Knight said: "Which?'s proposal for a single unit tariff sounds simple but it's not what it says on the tin. For example, high energy users like working families with children would end up subsidising low energy users like second home owners.

"It also ignores the varying charges network companies make in different regions of the country. Those charges are set by the regulator and come through on the bill."

Energy pricing 'virtually impossible to make sense of'

The executive director of consumer group Which? has said that current government proposals for simplifying energy tariffs will "fail to help people find the best deal".

Richard Lloyd said:

Ofgem's current proposals will fail to help people find the best deal and could leave millions paying over the odds for their energy.

The complexity of energy pricing makes it virtually impossible for most people to make sense of the market.

Our research shows that people find it e

asier to spot the cheapest deal for them when prices are presented clearly, simply and consistently - just like on the petrol station forecourt.

The Prime Minister should intervene again to make sure that his energy reforms work for hard-pressed households.

– Richard Lloyd, executive director of consumer group Which?

Reforms of energy tariffs are 'too complex'

Government plans to simplify energy tariffs are still too complex to allow consumers to find the cheapest deal, according to a watchdog
Government plans to simplify energy tariffs are still too complex to allow consumers to find the cheapest deal, according to a watchdog Credit: Yui Mok/PA Wire/Press Association Images

Government plans to simplify energy tariffs are still too complex to allow consumers to find the cheapest deal, according to a watchdog.

Which? said a survey found just three in 10 people (28%) correctly chose the right answer when asked to identify the cheapest deal using Ofgem's Tariff Comparison Rate (TCR) proposal.

The consumer group has recommended that tariffs are presented in the style of a petrol forecourt display using single unit prices, claiming that 84% of those surveyed picked the cheapest deal using such a format.

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Ofgem: New reforms will be 'clearer and simpler'

Energy regulator Ofgem has responded to claims that customers will spend more money on their energy bills following confusing changes to tariffs.

An Ofgem spokesman said that Ofgem's reforms will deliver a "simpler, clearer and fairer energy market for consumers", making it easier for them to choose the right deal for them.

Which? is misrepresenting the purpose of the tariff comparison rate and how it fits into the full scope of Ofgem's reform package. The tariff comparison rate acts as a prompt to consumers to take a look at comparative deals . The tool is similar to the 'typical

APR' used in financial services marketing. But it is partnered with personalised consumption information necessary to make a full and accurate cross market comparison , which every supplier must provide via bills and annual statements. Ofgem's reforms will also see suppliers cheapest deals on your bill.

– Ofgem spokesman

Which?: 500,000 could be advised on wrong tariffs

Around 500,000 low energy users, who tend to be on the lowest incomes, could be advised on the wrong tariffs, under new proposals by Ofgem, Which? said.

Rising energy bills remain one of consumers' top financial concerns yet six in 10 of us have never switched supplier as people are left baffled by the vast array of complicated tariffs.

These current proposals are far too complicated and will fail to achieve their aim of making it easier for people to find the best deal, with three-quarters of people being asked to compare prices that are not based on their energy usage.

– Richard Lloyd, executive director at Which?

Survey: Higher energy costs for millions of households

New Ofgem proposals could see consumers pay an extra £55 million for energy bills, research has found.

Energy tariff reforms could lead to higher costs for more than 3.4 million households, as they struggle to identify the cheapest energy tariffs, research by Which? said.

The tariff comparison rate (TCR) aims to simplify energy tariffs Credit: Rui Vieira/PA Wire

The proposed tariff comparison rate (TCR) aims to simplify energy tariffs, allowing consumers to compare tariffs across the market.

Consumers will be advised on their best deal based on medium usage of gas and electricity, but only 26% of consumers use this level of energy.

Which? said as a result three quarters of customers will be directed to tariffs unsuitable for them.

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