Green energy ‘gives power firms £7bn windfall’

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Power companies who are already putting up household bills are set to benefit from measures to encourage the building of new nuclear power stations and windfarms, according to Credit Suisse.

Chris Huhne, the Energy Secretary, will tomorrow set out plans to encourage low-carbon energy generation techniques.

The Electricity Market Reform White Paper will offer financial incentives to low-carbon generators, guaranteeing them a fixed price for their power above the market price.
Those incentives will be funded by households though their power bills.

According to a Credit Suisse report, higher prices will bring in an extra £24 billion for power companies between 2013 and 2020. Their costs are only forecast to rise by £17 billion, giving a profit of £7 billion.

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