Green Energy Suppliers object the prospect of adding a surcharge to household energy bills

Plans to add a surcharge to household energy bills to pay for the construction of new nuclear power stations is being opposed by Green Energy suppliers Ecotricity, Good Energy and others.

Surcharge for nuclear power station construction

Unfair for Green consumers

Naturally this has caused energy suppliers who pride themselves on being 100% green to be angered as the deals they offer do not include energy sourced from nuclear power stations.

Consumers already pay for a number of green energy policy costs via their energy bills such as subsidies for wind and solar power schemes. Energy suppliers already have a tough time having to explain to their customers why these extra charges are included on their energy bills, but the fact that this new planned surcharge is for nuclear has caused outrage amongst green suppliers.

“Its bonkers we would all have to pay this subsidy for at least a decade of construction and not for power generated. The government is reluctant to fund nuclear projects itself, so allowing Sizewell to access the regulated asset base system is simply dumping the cost onto consumers – even those who have gone renewable, and that’s just unfair,” said Dale Vince, the found of Ecotricity in an interview with the Financial Times.

Another concern the energy suppliers have is that such a surcharge could result in costing the consumer far more than the government initially says it would. Government contracts are notorious for running over budget and missing deadlines.

“We should be deeply concerned by the nuclear industry potentially being offered such a deal to build expensive new plants with little incentive to deliver on time or within budget,” said Good Energy’s policy manager.

Also read: Energy suppliers join forces to demand a legal requirement to put an end to ‘misleading’ green tariffs

Clash of the Energy companies

The green suppliers’ complaints now put them on a collision course with EDF, who has the contract to develop the Sizewell C plant.

It argues that the introduction of such a surcharge will keep costs lower and result in long term savings for consumers to the sum of £5 billion per year.

Bulb Energy also got involved in the debate by warning that such a surcharge will not protect customers on renewable tariffs but instead will increase their energy bills for a technology they will not benefit from.

The clash between green energy suppliers and those not 100% dedicated to renewable energy is sure to heat up over the next few months and years as more measures, changes to regulations and rising prices are sure to cause more friction.

Also read: Battle of the Green Energy Suppliers as Good Energy rejects £56.6 million Ecotricity takeover bid

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Further Reading

Energy Bills would have to rise £56 per month to incentivise consumers to invest in going green says Nationwide report

National Grid to be stripped of electricity responsibilities in favour of a new independent Future System Operator

Younger customers most worried about energy bills and most likely to have fallen into arrears says Ofgem data

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