What’s stopping us?
The Climate Change Secretary, Ed Davey, promised this week to ‘reduce the volatility of energy bills’. Unfortunately, his proposal to eliminate the peaks and troughs in the electricity market involves elevating bills to a much higher level and leaving them there. Besides the pain this will inflict on already stretched households, the result of the highly rigged energy market envisaged by the government will be to make British industry chronically uncompetitive. The conceit that fossil fuel prices are necessarily set on an upward and increasingly volatile trend over the coming decades has been put about by the Department for Energy and Climate Change (DECC) for years in spite of mounting evidence to the contrary.