The Telegraph is reporting that the UK's energy "regulator", Ofgem, has authorised capital expenditure of £7.6bn to allow windfarms in Scotland to be connected to the electricity grid (H/T Lord Beaverbrook).
Ofgem said on Monday it had fast-tracked proposals for infrastructure spending by energy companies ScottishPower and SSE and expected to make a final decision in April, following a consultation.
The investment will be paid for through energy bills and is likely to add 35p to a typical household bill each year from 2013 to 2021.
Eight years, 35p per year, and say 30 million households. By my reckoning the cost to consumers over eight years is £84 million, (£10.5m per annum).
8 × 0.35 × 30 million = 84 million
So who is paying the difference between the £7600m spend and the £84m recouped from consumers?
Or have they got their maths wrong and they mean that the cost per household per year will be £32?
7600 ÷ (30 × 8) = 32
I guessing they have got this wrong by a factor of 100.