Sunday, 27 November 2022

Is Energy Cheap or Expensive - It's a guess but...

We have mentioned energy a lot in previous posts. I suppose we would as it permeates all our lives. Certainly does so in the western world. I suppose the war in Ukraine does not help but that is not the only thing about energy. In this country VAT (Value Added Tax) is levied on bills. The rate at which it is levied varies but homeowners should pay 5%. Even that, when your bill is approaching £2,000 annually, it represents something like nearly £100 in tax. That would look better on my bank balance. I must be honest I am aware we need to pay tax but I am also aware that it is not always spent wisely! Let’s look at wind turbines. You might know I am opposed to them on land simply for two reasons, environmental problems and misuse of crop growing land or grazing land or even recreational land. The problems they cause to birds are already well-known. Besides all that, these monstrosities produce thousands of tonnes of CO2 into the atmosphere through production of the metals and plastics as well as cement and hardcore for concrete on which they must be anchored. Lastly I must mention the greed of people, people like private equity investors and supply companies who buy up land or take a controlling interest and place these turbines. Then sell the electricity produced to the National Grid. An investment to obtain all possible grants and ‘harvest’ the wind.  

These grants are paid from the tax levied of us, the users of electric power. On top of that there is also a levy or levies by the government on the generating company (like EDF or whoever generates electricity) then there is a levy on the supplying companies (like OVO, or Octopus in the UK). Is your head spinning yet? Well, look at the rates – the Climate Change Levy – from April 2022 through to 2023 it is £ 0.00775 per kWh. Doesn’t sound a lot? For gas another £0.00672 per kWh. There is more but you can see that the amounts are huge in real terms. Especially a website named WorldData.Info tells you that 309.2 billion kWh are used in the UK alone. That was generated first. Obviously this is only the ‘used power’ figure the actual generated amount is higher and some of it not used as you cannot store electricity in such quantity. Unless you would be living next to gigantic batteries, the size of which would dwarf a city like Paris. 

Impossible. So, the taxation would bring in over the billions if not trillions. But is it going to combat global warming? Hahaha, what do you think? See my previous post about how much it costs to provide government. In particular a government which has lost its grip.The national bill for social services dwarves even my pocket money. We pay billions on Interest charges, for what is called Universal Credit that every Tom, D*ck and Harry seems to be claiming in this country. The list is endless. As such I hasten to add I cannot see any meaningful reductions in taxation happening this side of the next century. The only thing I am pretty certain of is the costs of social services will continue to rise as will the salaries of those administering it. My advice to you? Become employed by the State! Or stand for Office (MPs, AMs, local government etc etc). Or emigrate to Outer Mongolia and live in a Yurt. Lovely.

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