Complaint
A listener complained about a 鈥渕颈蝉濒别补诲颈苍驳鈥 report on the cost of renewable electricity. 聽The ECU considered whether the item met the 大象传媒 standards for due accuracy.
Outcome
The complaint related to a report by the 大象传媒鈥檚 Business Editor in which he summarised the outcome of the fourth round of the Government鈥檚 Contracts for Difference scheme as follows: 鈥淭he auctions saw offshore wind prices hit a new record low at a quarter of the current cost of gas generated power鈥. The complainant said this was misleading because 鈥渢he 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鈥.
The Contracts for Difference scheme allows companies to invest in renewable energy projects and agree to generate electricity for a 鈥渟trike price鈥 which is linked to inflation. 聽If the market price for electricity generated is lower than the strike price, the project receives a subsidy to make up the difference. 聽If price is higher, the project must pay back the extra money. 聽The latest scheme to which the Business Editor referred set a strike price for offshore wind of 拢37.35/MWh, expressed in 2012 prices. 聽Adjusting that for inflation since 2012 would add around 30%. 聽By contrast, the cost of electricity generated from gas-fired power stations at the time of the report was more than 拢200/MWh according to Ofgem and so the comparison (鈥淭he auctions saw offshore wind prices hit a new record low at a quarter of the current cost of gas generated power鈥) was, in the ECU鈥檚 view, duly accurate. 聽More context would, of course, have added to the audience鈥檚 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