British energy policy, once heralded as a pathway to cheap, secure and decarbonised power, has instead resulted in some of the highest energy costs globally. Despite the optimism of Ed Miliband and before him, Boris Johnson, Britain’s energy system is heavily dependent on foreign supply chains, finance and ownership. The shift to intermittent renewables like wind and solar has doubled infrastructure needs, while long-term contracts lock in elevated prices until at least 2045. Offshore wind, particularly in Scotland, suffers from grid constraints, leading to payments for unused generation. The government’s approach to nuclear, with its “let’s try one and see if it works” perspective, rather than a fully fledged nuclear programme, has followed an inefficient and costly path, further entrenching high costs.
This trajectory poses serious risks to the UK economy. Energy-intensive industries are closing, and few new ones are emerging, as high energy prices deter investment. Britain’s apparent success in reducing carbon emissions masks a growing reliance on imported carbon-intensive goods. Without radical policy reform – renegotiating contracts, restructuring pricing, and rethinking energy strategy – Britain faces a future of permanently high energy costs and diminished industrial competitiveness. What is needed now is not our politicians flying off to yet another COP, this time in Brazil (with access by a new road cut through the Amazon rainforest), but honesty and humility in global climate discussions, urging leaders to learn from Britain’s missteps rather than emulate them.
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British energy policy, once heralded as a pathway to cheap, secure and decarbonised power, has instead resulted in some of the highest energy costs globally. Despite the optimism of Ed Miliband and before him, Boris Johnson, Britain’s energy system is heavily dependent on foreign supply chains, finance and ownership. The shift to intermittent renewables like wind and solar has doubled infrastructure needs, while long-term contracts lock in elevated prices until at least 2045. Offshore wind, particularly in Scotland, suffers from grid constraints, leading to payments for unused generation. The government’s approach to nuclear, with its “let’s try one and see if it works” perspective, rather than a fully fledged nuclear programme, has followed an inefficient and costly path, further entrenching high costs.
This trajectory poses serious risks to the UK economy. Energy-intensive industries are closing, and few new ones are emerging, as high energy prices deter investment. Britain’s apparent success in reducing carbon emissions masks a growing reliance on imported carbon-intensive goods. Without radical policy reform – renegotiating contracts, restructuring pricing, and rethinking energy strategy – Britain faces a future of permanently high energy costs and diminished industrial competitiveness. What is needed now is not our politicians flying off to yet another COP, this time in Brazil (with access by a new road cut through the Amazon rainforest), but honesty and humility in global climate discussions, urging leaders to learn from Britain’s missteps rather than emulate them.
The British economy is going to see more regulators, more regulatory bodies, more intervention in the private sector – all requiring businesses, on the other side of the regulatory rules, to spend more time dealing with regulators and regulation. While all governments promise to “cut red tape” – and the new government is no different – sadly, the opposite appears to be happening. There are plans not only to beef up existing regulatory bodies (Ofcom, HMRC, Ofgem, Ofwat possibly, and the EA), but also to add new regulators, including NESO, the Regulatory Innovation Office, the Fair Work Agency. No doubt there are more to come.
Why does regulation grow and grow? Do we need yet more regulatory bodies, on top of the government departments, the various offices of regulation, the plethora of quasi-regulators that surround them, and the regulators that regulate them? Does it lead to better outcomes? Not only does the new government want to do more, so, too, will the regulators themselves, as they tend to seek to expand in order to increase their budgets and make their mark. Hence the growing regulation industry, despite the efficiencies that one might expect new digital technologies to bring. But as regulation in the UK mushrooms, with this additive (not substitution) approach, what does it mean for the UK economy ahead?
Helm Talks - energy climate infrastructure & more
British energy policy, once heralded as a pathway to cheap, secure and decarbonised power, has instead resulted in some of the highest energy costs globally. Despite the optimism of Ed Miliband and before him, Boris Johnson, Britain’s energy system is heavily dependent on foreign supply chains, finance and ownership. The shift to intermittent renewables like wind and solar has doubled infrastructure needs, while long-term contracts lock in elevated prices until at least 2045. Offshore wind, particularly in Scotland, suffers from grid constraints, leading to payments for unused generation. The government’s approach to nuclear, with its “let’s try one and see if it works” perspective, rather than a fully fledged nuclear programme, has followed an inefficient and costly path, further entrenching high costs.
This trajectory poses serious risks to the UK economy. Energy-intensive industries are closing, and few new ones are emerging, as high energy prices deter investment. Britain’s apparent success in reducing carbon emissions masks a growing reliance on imported carbon-intensive goods. Without radical policy reform – renegotiating contracts, restructuring pricing, and rethinking energy strategy – Britain faces a future of permanently high energy costs and diminished industrial competitiveness. What is needed now is not our politicians flying off to yet another COP, this time in Brazil (with access by a new road cut through the Amazon rainforest), but honesty and humility in global climate discussions, urging leaders to learn from Britain’s missteps rather than emulate them.
