Quotulatiousness

July 1, 2018

Over-generous subsidies encourage fraud and waste

Filed under: Britain, Economics, Environment, Government — Tags: , , , , , — Nicholas @ 03:00

At Catallaxy Files, Rafe Champion continues discussing Matt Ridley’s book Climate Science: The Facts:

Ridley went on to criticise biodiesel programs and the promotion of diesel cars. Then he mentioned one of the most outlandish schemes – the clearing of forests on the west coast of the US to convert into wood pellets to burn in British furnaces instead of coal to generate electricity. The Daily Mail reported that this was one of the legacies of Energy Secretary Chris Huhne.

    Mr Huhne, who served in the coalition government and was later jailed for perverting the course of justice, championed the energy source in office and is now European chairmen of Zilka Biomass, a US supplier of wood pellets.

Nice work if you can get it.

And then there are the household biomass furnaces in Britain, promoted by Huhne under the Renewable Heat Incentive (RHI) scheme whereby businesses and households pay for a renewable energy boiler upfront then receive payments for up to 20 years depending on the amount of heat they produce.

    Some unscrupulous homeowners can double the amount they produce by using heat generated under the RHI to dry wood or other materials.

    This can then be fed back into the boiler to burn it and generate even more heat – and money from the public purse.

    The scheme was started in 2011 by Chris Huhne, then Liberal Democrat energy secretary, for businesses then extended to domestic customers three years later. Households and firms can apply for grants to switch from fossil fuel heating systems to renewable ones such as biomass boilers, which burn wood pellets, chips or logs.

As the scheme is open to applications until 2021, final payments to participants will run to at least 2041. By this time, the bill for taxpayers is expected to hit £23billion.

Closely related is the the Irish “Cash for Ash” scandal that paid more than the cost of the fuel. An orgy of corruption was sparked by renewables in Spain and there was the strange phenomenon of solar power generated in the dark because the Spanish subsidy was initially so generous is was worthwhile to shine diesel-powered lights on the panels overnight.

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