Investigation Called Into £175m Subsidy For Back-up Diesel Power

Companies were awarded more than £175m in subsidies to build heavily polluting “diesel farms” to provide the UK with backup energy generating capacity, in an energy generation auction overseen by the National Grid.

Bryony Worthington, a Labour life peer and founder of Sandbag, an organisation which campaigns to reduce CO2 emissions told The Guardian: “The UK’s [power auction] is a complete shambles. We’re spending money on all the wrong things and as a result the right things are not happening.”

“There should be an urgent investigation into why it’s gone so badly wrong with reforms introduced in the energy bill, which will arrive in the Commons in January.”

Frank Gordon, senior policy analyst at the REA, said: “This year’s capacity market auction underlines the problems with the policy – that it does nothing to support the move away from higher carbon to clean energy, and it does not adequately consider value for money.”

Friends of the Earth energy campaigner Alasdair Cameron said: “Subsidising polluting diesel while cutting support for renewables like wind and solar is just wrong. It’s outrageous that the government is handing out hundreds of millions of pounds supporting diesel and old coal power stations, but has capped spending on new rooftop solar at just a fraction of that.

“Ministers must end their short-sighted support for climate-wrecking fossil fuels, and commit to building a clean, renewable energy system fit for the future.”