How to pay for energy
How do we pay not just for the immediate costs of energy, but for the full transition to net zero? Right now the UK economy is around 80% dependent on fossil fuels, just as it was back in 1970 - and much the same as the rest of the world. We have 28 years to get this down to a residual, all of which needs to be sequestrated. We have the 2050 net zero target and the 2035 target for net zero for electricity - just 13 years away. This is a transition on a scale last seen in converting a peacetime economy into a wartime economy ready for the Second World War. We are all in this together as citizens and we have to find a way to pay for this that enables all citizens to participate fully in society and the economy. This means that we need a social tariff, to provide the basic social primary good of energy. It breaks the link between price and costs, and brings the better-off customers and the Treasury into this picture. None of the current short-term fixes is going to address the costly long haul to net zero. Sticky plasters like loans and Council Tax rebates assume that our current energy price crisis is temporary. It is not. Lots and lots of intermittent wind will increase costs, which we should pay – as citizens and not just consumers.

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Episoder(90)

Why can't we build infrastructure in this country?

Why can't we build infrastructure in this country?

Politicians have been seeking for decades to put right the infrastructure crisis in this country that is rooted not in a lack of ambition, but in deeper economic and political constraints. Building in...

15 Jun 15min

Crisis? What crisis?

Crisis? What crisis?

The International Energy Agency describes the current Iran conflict as the “biggest energy crisis in history”. While oil prices have risen sharply, they remain below the real highs of past shocks. How...

27 Mai 14min

Britain's negative-sum society

Britain's negative-sum society

The concept of a zero-sum game was fashionable in the 1970s. The idea was simple: competing interest groups, and especially unions, would fight for ever-bigger shares of the nation’s cake, and their g...

17 Mai 14min

No such thing as free electricity

No such thing as free electricity

There is no such thing as a free lunch, and there is no such thing as “free” electricity. What is true is that there are going to be days in summer when supply exceeds demands and hence the value of e...

24 Apr 11min

Sticky plaster energy policy is falling apart

Sticky plaster energy policy is falling apart

Another day and another bit of sticky plaster is applied. With the highest industrial energy prices in the developed world, the government is increasing the number of companies that will get a bit off...

20 Apr 15min

Gas prices, gas mistakes and gas policy

Gas prices, gas mistakes and gas policy

The news is very much about gas price shocks, but this is to misunderstand the fundamental difference between temporary shocks and long-term trends. Gas prices spike when major geopolitical events occ...

24 Mar 13min

Britain's industrial energy price crisis

Britain's industrial energy price crisis

Britain is facing a deep industrial energy price crisis, with many major industries collapsing or shrinking because UK electricity costs are among the highest in the world. Recent closures—from refine...

17 Mar 15min

The energy security gap

The energy security gap

The International Energy Agency, at its recent ministerial meeting (Feb 18th/19th), agreed on one top priority: energy security. Hybrid warfare, cyber-attacks and the ease with which modern energy inf...

24 Feb 15min

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