Lower energy bills for people near wind turbines considered

The Government is considering plans to reduce people’s energy bills based on how close they are to onshore wind turbines, the BBC has been told.

It’s an idea that energy company Octopus is proposing to some customers in Yorkshire and Caerphilly.

However, the government is considering extending this to the whole country.

There are currently strict planning regulations as to where onshore wind farms can be built in England, which is discouraging wind farm development.

Economy Minister Kwasi Kwarteng advocates relaxing regulations to make it easier to approve plans for more onshore wind.

The Government is expected to outline its energy supply strategy next week – which will include plans to accelerate renewable energy in the UK.

One plan under consideration is a review of England’s tightened planning laws in 2015 to facilitate the approval of more onshore wind farms.

The Business Secretary supports the idea and Downing Street sources said the Government must be “open” to more onshore wind.

It is understood Michael Gove – who is in charge of planning in England – is also supportive.

However, the BBC has been told that other Cabinet ministers are strongly opposed to the plans and onshore wind farms have been controversial with Conservative campaigners in the past.

A government source said that – if the idea is approved – “as with any development, local approval is absolutely crucial. We would always want to bring the public with us.”

Electricity and gas bills for a typical household will rise by £693 a year in April, a 54% increase.

In October, customers in England, Scotland and Wales will receive a £200 rebate on their electricity bill. You’ll have to repay this at £40 a year for five years, starting in April 2023.

But the OBR on Wednesday forecast that October’s energy bills will rise another 40% if wholesale gas prices stay at current levels.

In his spring statement, Mr Sunak said VAT on energy-efficient products such as solar panels, insulation and heat pumps would be reduced from 5% to 0%.

The BBC understands one option under consideration is to introduce a scheme to make electricity bills cheaper depending on people’s proximity to an onshore wind farm.

It goes without saying that this would apply to new developments.

A similar system is currently operated by the energy company Octopus. Your customers get 20% off the electricity bill when their local turbine is spinning and 50% off when it’s up to speed.

So far there are two local wind turbines using this model – one in Market Weighton in Yorkshire and one in Caerphilly in Wales.

The BBC was told the government was “very interested” in the scheme and was considering rolling it out nationwide to incentivize onshore wind farm permits in local areas of the population.

A Government source said: “Ministers want to ensure communities are able to benefit directly from hosting renewable energy infrastructure. A number of different options are being discussed.”

The energy strategy expected next week is likely to focus on plans to accelerate the UK’s roll-out of more renewable and nuclear energy – as well as the government’s ambitions to relax regulations on extracting oil and gas from the North Sea while the government moves away from away from Russian gas and the transition to more renewable energy.

Labor MP Darren Jones, who chairs the Commons’ select committee focused on business and energy, called on the government to take more action on energy.

“Colleagues in Parliament who have concerns about onshore wind turbines, which are a much better option than fracking, may be able to demand that the government bring forward the delayed updates to the energy efficiency voucher scheme to help families insulate their homes and protect the environment Reducing energy demand is the first place.”