Talking to the One Show about energy prices

September 13, 2011 12:54 PM

Yesterday evening I appeared as part of a panel for the One Show responding to consumers' questions about high energy prices.  With electricity and gas bills putting so much pressure on their finances, it is important that people are aware of just how much government climate regulations are already costing them, and set to add to their bills this decade.  We need to get rid of failing climate change policies but that won't happen if the public aren't aware of the price they're paying.  Here is the clip, and there is a lot more detail in the book.

[iframe http://www.youtube.com/embed/B5fvQHpxbCk 485 302]

One thing that came up in that clip, which it is worth saying a bit more about, is Chris Huhne's suggestion that we won't get higher bills because of the measures they are taking to improve the energy efficiency of our homes.  When you think about it, that argument is somewhat absurd.  He can't conjure £200 billion of investment in the energy sector out of nowhere.  Who does he think will pay for that massive investment?

When Citigroup looked at this issue they found that even with major efficiency improvements prices will still rise by well over a third in real terms, and then we have got to pay for all the insulation and double glazing too.

He was also misleading when he said that this investment was needed to keep the lights on.  Replacement and renewal to maintain supply is only a small share of projected investment.  It is attempts to cut greenhouse gas emissions that are driving the huge costs expected here.  Particularly building, connecting and backing up massive amounts of offshore wind.Yesterday evening I appeared as part of a panel for the One Show responding to consumers' questions about high energy prices.  With electricity and gas bills putting so much pressure on their finances, it is important that people are aware of just how much government climate regulations are already costing them, and set to add to their bills this decade.  We need to get rid of failing climate change policies but that won't happen if the public aren't aware of the price they're paying.  Here is the clip, and there is a lot more detail in the book.

[iframe http://www.youtube.com/embed/B5fvQHpxbCk 485 302]

One thing that came up in that clip, which it is worth saying a bit more about, is Chris Huhne's suggestion that we won't get higher bills because of the measures they are taking to improve the energy efficiency of our homes.  When you think about it, that argument is somewhat absurd.  He can't conjure £200 billion of investment in the energy sector out of nowhere.  Who does he think will pay for that massive investment?

When Citigroup looked at this issue they found that even with major efficiency improvements prices will still rise by well over a third in real terms, and then we have got to pay for all the insulation and double glazing too.

He was also misleading when he said that this investment was needed to keep the lights on.  Replacement and renewal to maintain supply is only a small share of projected investment.  It is attempts to cut greenhouse gas emissions that are driving the huge costs expected here.  Particularly building, connecting and backing up massive amounts of offshore wind.

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