Crown Estate ‘profiteering’ over offshore wind farms

THE Crown Estate has been accused of “monopoly profiteering” from its offshore wind leases around the coast of Wales.

- ANDREW FORGRAVE

According to the Welsh Lib Dems, households are paying the price through higher energy bills.

The party claimed the Crown Estate's decision to run uncapped auctions for access to the seabed is forcing developers to pay vastly inflated fees to secure sites for offshore wind farms.

According to recent analysis, highlighted by Greenpeace UK, the fourth offshore wind leasing round generated more profit for the Crown Estate than all previous rounds combined, largely due to the removal of caps on auction bids.

Greenpeace is threatening to sue the property management company, accusing it of exploiting its monopoly ownership of the seabed.

The Lib Dems argue the rising costs are ultimately passed on to consumers through the UK Government's Contracts for Difference scheme, increasing electricity prices.

The Crown Estate said the fees ultimate benefit everyone as net revenue is returned to the Treasury and it contributes the development of the UK’s offshore wind sector.

Welsh Lib Dem MP David Chadwick challenged Welsh Secretary Jo Stevens in Parliament on November 3, arguing that Wales sees “little direct benefit” from rising profits made from natural resources located off the Welsh coast.