The Economics of UK Energy Policy

Categories: Energy Policy, Policy

In 2016, the House of Lords Select Committee on Economic Affairs launched an inquiry in to how the government is dealing with energy policy. Calls for evidence were issued to interested parties and the committee published my own response on the 29th of September 2016. The questions are listed below and my published evidence can be accessed via this link.

  • What are the key economic challenges for the energy market which the Government must address over the next decade?
  • Has the market and the Government responded effectively to changes in external circumstances, such as significant shifts in technology and prices?
  • What are the emerging technologies which could materially change the energy market over the next decade and beyond? How should the Government promote research and development-could any shift in public funding improve the efficiency of the energy market? How long might it take for new technologies to displace the established capital stock?
  • What should the future balance between the roles of the public and the private sector be? Is further expertise needed within Government to understand the issues and to negotiate with external investors and suppliers?
  • Are returns for private investment in the sector adequate or excessive? How should the Government attract sufficient investment?
  • What is the relationship between high energy costs and the loss of industrial capacity in the UK? What measures should be taken to address this?
  • What preparations could be made to cope with the risk of a shortfall in energy supply? What would be the cost to the economy of the breakdown of the existing system?
  • What alternate ways of pricing energy should be considered to reduce the burden of high energy bills, in particular on less well-off consumers?