The House of Lords’ Economic Affairs Committee has launched a new inquiry into the economics of the UK energy market, which have focused on three objectives over the past 10 years: – Maintaining continuous supplies of energy and minimising threats to energy security; Ensuring that the costs of energy supply are competitive for business and individual users; and Decarbonising the mixture of energy used in the UK as a contribution to the international effort to minimise the risks of climate change. Lords will consider whether the present mix of policy interventions and subsidies have led to failures in the energy market. It will look at what measures are required to correct these failures. The accelerated closure of coal-fired plants and subsidies for renewables have been the principal means of securing decarbonisation. Paying for subsidies by charges on consumers, rather than from taxes, has meant that prices have risen while the resultant lack of investment in baseload capacity means that continuity of supply is now seriously threatened.
Scottish Energy News 22nd July 2016 read more »