Why are UK energy prices so high?

Why are UK energy prices so high?

The UK has very expensive electricity for both the industrial sectors and consumers, despite the government’s policies that are intended to deliver the exact opposite. It’s damaging not only the dwindling remaining energy-intensive industries in the UK, but also any potential future ones, including all the AI and data centres. A quick look at the existing energy generation assets in the UK, and the high energy costs are perhaps not such a surprise. These assets are relied upon to deliver secure, firm power, but fast-tracking the renewables generation route by 2030 means that all the energy sources become intermittent. While Ed Miliband, Secretary of State for Energy and Climate Change, continues to tell us that renewables costs are nine times cheaper, this is far from the reality of what the true system costs of energy are. If they were, the UK would already be outcompeting the US. It obviously isn’t. In this podcast, Dieter Helm looks at an alternative approach to setting competitive electricity prices, going back to how energy prices were set in the days of the Central Energy Generating Board, before privatisation.

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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...

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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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