ΒιΆΉΤΌΕΔ

The complaint related to a report by the ΒιΆΉΤΌΕΔ’s Business Editor in which he summarised the outcome of the fourth round of the Government’s Contracts for Difference scheme as follows: β€œThe auctions saw offshore wind prices hit a new record low at a quarter of the current cost of gas generated power”. The complainant said this was misleading because β€œthe prices achieved in the auction are not an indication of how much electricity from renewables will cost the consumer or taxpayer at wholesale point in future, if indeed it ever gets generated”.

The Contracts for Difference scheme allows companies to invest in renewable energy projects and agree to generate electricity for a β€œstrike price” which is linked to inflation. Β If the market price for electricity generated is lower than the strike price, the project receives a subsidy to make up the difference. Β If price is higher, the project must pay back the extra money. Β The latest scheme to which the Business Editor referred set a strike price for offshore wind of Β£37.35/MWh, expressed in 2012 prices. Β Adjusting that for inflation since 2012 would add around 30%. Β By contrast, the cost of electricity generated from gas-fired power stations at the time of the report was more than Β£200/MWh according to Ofgem and so the comparison (β€œThe auctions saw offshore wind prices hit a new record low at a quarter of the current cost of gas generated power”) was, in the ECU’s view, duly accurate. Β More context would, of course, have added to the audience’s understanding of what is a complex matter, but this was not necessary when taking account of the subject and nature of a brief news report.
Not Upheld