They will end on April 1st next year. That is an average of about £45 a year from every household and business. It is a lot of money to take out of the system and will probably make some wind farms uneconomic to run. It is also likely to force the cancellation of some wind farms currently in the pipeline.
The news comes on the same day as E.On announced the closure of its gas fired power station at Killingholme in Lincolnshire and the loss of 500 jobs.
Both decisions will reduce the UK's generation capacity at a time when usage is going up. It begs the question: "Where is our electricity going to come from?"
A couple of years ago Ofgem predicted that our energy gap - what we generate and what we use - would fall to 2% spare capacity by this year. This latest news means that we could have a shortfall at peak periods at any time. We are currently not doing enough to replace lost capacity never mind increasing it.
12 of our 14 AGRs will close by 2024 - 10 by 2023 - and the last in 2028. Given they take about 12 years from the first sod being cut to producing electricity we should have started to replace them about four years ago.