Sunday 4 August 2013

Energy Policy Is A Mess

I am told by one who should know that a recent straw poll at the CBI demonstrated that the two biggest concerns that UK businesses have are the lack of skilled potential recruits and the country's chaotic energy policy. To date I have resisted pontificating on the former, although I have seen local students appallingly let down by their educational establishements and, not so long ago when I was in a position to recruit, I was sickened by the poor CVs of so many new graduates. That is for another day. I have, however, grumbled on about the dreadful state of the UK's energy policy - particularly as it relates to the electricity sector.

The fact that we still don't have a new nuclear programme agreed is just one symptom. For sure, some of this is down to EdF failing to undertand that chaotic energy policy does not necessarily mean that the officers at DECC with whom they are dealing are in a weak position. EdF should realise that a deal at, say £70/MWh, is probably a win-win solution and could form a valuable platform for the company to rebuild its business. Perhaps when the summer sun is not frazzling the Gallic brain sense will prevail.

HMG, of course, does not help itself. As currently organised energy provision is an amalgam of public (i.e. government) policy and private money. If the policy side is not clear the money side will not follow. That is just where we are.

I will not apologise for repeating my argument that the country's value chain begins with the cost of energy. For that to be optimised there is a requirement for a clear and coherent energy policy. It's not rocket science.

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