For some reason (‘de-carbonisation’) the UK government’s actions on electricity supply are usually opposite to its stated policy of ‘secure, affordable’ energy. Expensive and often unreliable power sources are given priority most of the time, apparently in pursuit of climate illusions.
Interventions in the energy market by successive governments have pushed up prices, but not secured supplies, peers found. A House of Lords committee said the interventions have led to an opaque, complicated and uncompetitive market, reports BBC News.
The peers blame “poorly designed government interventions in pursuit of decarbonisation” that they say have put pressure on energy supply and bills. The government said its priority was ensuring secure, affordable energy.
In recent years policy has been focused on the so-called “energy trilema” of delivering security of supply at an affordable cost to consumers while meeting our climate change goals. However, the report states energy security should be the priority and that low-carbon policies have contributed to higher bills for households and businesses, leading some energy-intensive firms to relocate abroad.
“It’s a very high price that is being paid,” says Lord Hollick, who chairs the House of Lords Economic Affairs Committee. He points out that green levies, which account for around 10% of energy bills, are set to soar: “Those renewable costs are estimated to go up to nearly 25% by the mid 2020s.”