Government intervention causes Britain’s energy sector to fail to deliver low costs and ensure supply, a report by the House of Lords argues
The government has allowed the UK's energy market to become "opaque, complicated and uncompetitive", a report to be published today argues.
Written by the House of Lords' committee on economic affairs, the report says Britain's energy market fails in two key areas: delivering low costs to customers and ensuring the country has sufficient supplies.
The security of the UK's energy supply should be the priority of the government's energy policy, the committee said. However, affordability should not be neglected and decarbonisation should be managed "flexibly".
“Hinkley Point C is a good example of the way policy has become unbalanced and affordability neglected," said Lord Hollick, economic affairs committee chairman.
Hinkley doesn't provide good value for money for consumers, and there are substantial risks associated with the project, Hollick said.
One of the committee's solutions is outlining a "Plan B" in the event Hinkley is delayed or cannot produce the anticipated power.
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To combat growing prices, the committee said the government should take a step back and create an independent energy commission to ensure competitive auctions and have independent oversight.
Since 2003, energy bills have more than doubled, rising 58 per cent, and Britain's industrial prices are the highest in Europe.
The committee wants a new National Energy Research Centre to be created to help the UK catch up with other countries in the race to find cost-effective energy solutions.
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