Wind and solar have destroyed the ability of the market to signal price
7 March 2016
Before the election, high electricity prices made the Big Six energy companies everyone’s favourite whipping boys. A report by the competition watchdog exonerated them. Government-driven social, environmental and network costs were the main drivers of rising electricity bills, the Competition and Markets Authority found. Now the Big Six have put themselves squarely back in the frame.
A 125-page report by the electricity industry lobby group, Energy UK, supports phasing out cheap coal power and demands more subsidies for wind and solar.
It is a high-risk strategy. In capitulating to “Big wind” and solar, the Big Six energy companies have no one to blame but themselves for the heightened political risk caused by rising electricity prices and the inevitable consumer backlash.
Weather-dependent wind and solar power is inherently unreliable and…
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