The Energy and Climate Change Committee has recently issued a call for evidence on "Energy Prices, Profits and Poverty". The call takes as an axiom that there is a need to deliver "secure, clean and affordable" energy in the future. Is this possible or is this a conundrum too far? Security inevitably means some redundancy - or at least access to reliable alternatives at times of stress. That comes with a price tag. Similarly, as ROCs, FiTs etc. imply, clean only comes at a premium to dirty.
Now, one could argue that all that is happening here is that externalities are being more nearly properly priced. We are/will be paying for the damage that CO2, say, has done/is doing. There is a lot to be said for proper pricing of goods and bads. However, where does that takes us on the affordability axis? Into a very uncomfortable place, I'd argue.
I have no answers - there are some massive social engineering issues that could arise here. So, for me, a conundrum it remains; but one that needs resolution. Somehow I doubt that the Committee will find one soon.
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