Energy realism: why energy costs are a very British crisis

As oil prices continue to fluctuate in global markets, Britain’s energy costs have become a distinctly British crisis. They cannot be explained away as a temporary consequence of global events. Industrial electricity prices continue to be among the highest in the developed world, consumer bills remain high, and there is little prospect of relief even in the longer term without a fundamental rethink of policy.

At the heart of the argument is the fact that wind and solar alone cannot deliver cheap, secure, homegrown energy. The full energy system costs, of electricity grids, backup, storage and firm power, have been underestimated, and this matters hugely for competitiveness, industry, AI and future economic growth. Energy realism means that Britain needs to face the hard choices about what sort of energy system can deliver affordability, security and climate progress together. The current government is persisting with its predecessors’ slogans. It is tinkering with subsidies and marginal fixes, but what is needed is structural reform now.