Subsidies spark war on energy

PRIMARK ARE NEXT IN LINE Government half deals for wind farms

A SLUMP in the cost of offshore wind farms has reignited a nuclear power row.

The Government yesterday announced the amount of subsidies firms could get to build “green” energy plants from 2021.

Operators will get up to £2.6billion over 15 years – paid for by a tax on every energy bill.

But the subsidies dished out to new offshore wind farms have halved over the past two years.

Three were handed so-called “contracts for difference” in the latest auction.

They include Dong Energy’s Hornsea Project 2, just off the PRIMARK are threatening to snatch Next’s title as Britain’s second-biggest fashion firm by value. Number-crunchers GlobalData say Primark’s share has grown to 6.8 per cent while Next – who announce half-year results on Thursday – have fallen to 7.2 per cent. Both are behind Marks & Spencer, who are on 8.3 per cent. Primark are already the country’s largest by amount of clothes sold, at more than 16 per cent, way ahead of second place Asda. It came as owners Yorkshire coast, which will be the biggest offshore wind farm in the world.

Dong and one other firm said they could build the plants for a minimum of £57.50 per megawatt hour for their electricity.

That compares with £92.50 guaranteed to a consortium, led by French firm EDF, building the new Hinkley Point C nuclear power plant in Somerset.

The cost for Hinkley has already rocketed to nearly £20billion.

That will be clawed back through a levy on household energy bills over 35 years, the cost for which could top £50billion.

Doug Parr, UK chief scientist at Associated British Foods hailed an expected 13 per cent rise in Primark’s full sales for boosting group profits, which would be “well ahead” of last year.

ABF’s finance boss John Bason said Primark’s success was due to them being “absolutely on trend”, getting core products right and being “fun”. The last of those includes Harry Potterthemed ranges which are a hit.

ABF’s share price has leapt 19 per cent this year but fell five per cent yesterday amid concerns about competition and cost pressures in their bread business. Greenpeace, branded the Hinkley project an “expensive white elephant”.

Tom Greatrex, chief executive of the Nuclear Industry Association, hit back: “The UK will need the full range of low carbon technologies to provide the reliable, secure and readily available power for homes, businesses and public services.”

Justin Bowden, GMB National Secretary for Energy, warned Britain could not rely on wind – or solar – energy.

He said: “A balanced energy mix of nuclear, gas and renewable energy sources is the only way of ensuring continuity of supply.”