Tridos Bank, CCLA, WHEB Asset Management and others have written to the Government to say that while the subsidies that renewable energy groups get are ?clear and transparent?, fossil fuels get indirect subsidies. According to the International Energy Agency, global subsidies to fossil fuels were six times higher than renewable energy in 2010.
City investors want the National Audit Office to work out precisely what subsidies fossil fuel groups get. They say that without knowing precisely the Government cannot develop a clear energy framework and people cannot invest in renewable energy projects.
Their letter says: ?To make clear decisions, we need a clear picture. We don?t have a full picture about the economic relationship between the State and the energy sector.?
The call comes ahead of the Government?s Energy Bill, due in mid-November, which is intended to set the framework for investment in lower carbon forms of energy, such as wind, and tidal energy, in order to reduce the UK?s reliance on gas and coal. However some fear the move to low carbon energy generation will be costly for consumers, with billions of pounds likely to be added to household bills in a type of green tax to pay for subsidies.
British consumers and businesses will be subsidising French nationalised industries by bankrolling EDF. In addition, most of the jobs created will go to foreign nationals
Director of environmental consultancy E3G Tom Burke
Last month business leaders urged Prime Minister David Cameron and Chancellor George Osborne to commit to a low carbon energy policy or risk damaging Britain?s economic recovery. EDF Energy, Sky, Boots, Asda, Aviva, Cisco, British American Tobacco, Microsoft and other corporate giants wrote to the Government to say that lack of clarity over policy is damaging the economy as companies cannot invest with any certainty in low carbon energy infrastructure.
Nuclear power is also seen as green because it has no carbon emissions. Industry estimates suggest that subsidies for new nuclear power could add up to ?70 to annual household energy bills.
France?s EDF Energy is planning to build new nuclear reactors at Hinkley Point in Somerset, but experts are sceptical of the benefits.
Tom Burke, director of environmental consultancy E3G, said: ?British consumers and businesses will be subsidising French nationalised industries by bankrolling EDF. In addition, most of the jobs created will go to foreign nationals.?