REFs study of the likely impact of climate change policies on the affordability of energy concludes:
1. Current renewable electricity policies intended to meet the EU Renewables Directive in 2020, will impose extra consumer costs of approximately £15bn per annum, which is roughly equivalent to 1% of current GDP. This annual total is comprised of approximately £8bn in subsidy, £5bn in grid integration, and a further £2bn in VAT charged on these extra costs.
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