Meeting of the Parliament 23 April 2014
No, thank you. I am short of time.
Ofgem has been issuing stark warnings that the lights will go out soon in England if reserve generation capacity is not urgently increased. That capacity is now approaching 2 per cent when, for safety’s sake, it should be around 25 per cent. On a couple of recent occasions, as much as £30,000 a kilowatt hour has been paid in the short-term energy markets just to keep the lights on. That drives average energy prices upwards.
Ed Miliband’s proposal to cap energy prices was ill-judged and has driven investment away from energy generation, especially renewables investment. The Tory Government’s reaction, in deciding to reduce and ultimately scrap the ECO without having a successor scheme in place was equally unwise and has led to the mothballing of many energy efficiency schemes across Scotland. If that was unwise, the decision to subsidise the Hinkley Point scheme to the tune of £35 billion, at double the wholesale price of energy, was just as bad.