The piece below, in collaboration with the Bow Group, details why the government’s slavish commitment to Net Zero is limiting their scope to mitigate the 54% increase in the energy price cap (10 x the current rate of Consumer Price Inflation).
Instead of removing 5% VAT on domestic energy (a key Brexit commitment) and abolishing the 25% green energy subsidy embedded in all bills, which would have made a significant difference to headline energy costs, the government’s response was predictable given their propensity to spend, further fuelling the National Debt.
Offering a £150 rebate on Council Tax bills for those in bands A to D, will be at least partially swallowed by increasing Council Tax bills.
Offering a £200 loan that will have to be repaid over 4 years is “Buy Now Pay Later” in a society already overflowing with consumer debt is pouring petrol on an already raging fire.
We produce just over half of our domestic energy requirements exposing us to the mercy of the wholesale energy markets, with the electorate suffering the inevitable consequences of a rising market.
There are just 3 coal fired power stations still in use (more than the government would like), without which with the wind stubbornly refusing to blow, the lights would have gone out several times in recent months.
The early closure of our nuclear power stations (and only one in Construction) means that nuclear will only provide a modest amount of our energy requirements for at least the next 10 years. Even if we began commissioning new nuclear plants to meet our requirements now, it would be the mid 2030s before capacity would meet current demand (not accounting for population growth).
All of which means, we can expect energy bills to keep rising in years to come until wholesale energy prices (over which we have no control) stabilise. That is anything but Net Zero to the electorate.
© justchrisdavies 2022