The Public Accounts Committee has warned that the licensing of the infrastructure required, including heavy-duty cables to carry the power to land, has been geared towards attracting investors rather than providing value.
Under the government’s plans, any provider who receives a license to construct the wind farm infrastructure are also given long-term contracts linked to RPI.
There was also criticism of the penalties imposed, as companies will be charged just 10% of one year’s income for failing to meet targets.
Margaret Hodge, chair of the public accounts committee, said: “Not only is it unlikely that this new licensing system for bringing electricity from offshore windfarms on to the national grid will deliver any savings for consumers, it could well lead to higher prices.
“Indeed the terms of the licences appear to have been designed almost entirely to attract investors at the expense of securing a good deal for consumers.”
The government hopes that offshore wind can provide as much as 15 percent of the UK’s electricity needs by 2020, helping to reduce carbon emissions in line with targets.