The UK is headed for another energy crisis. The war in Iran has choked energy markets and will be felt as another hit for inflation weary consumers and for the UK's beleagured economy.
What should government do now? And how can it act to make sure that it doesn't waste the crisis?
In this episode of Policy Fix, host Joe Owen sits down with Nesta CEO Ravi Gurumurthy and director of Nesta's sustainable future mission, Madeleine Gabriel to untangle the acute effects of this latest energy shock from more long running challenges in the UK's energy economy.
They explore:
- Why the UK is so exposed to energy shocks
- How this crisis differs from the gas spike caused by the invasion by Russia of Ukraine
- What the government should and shouldn't do to support consumers on rising bills
- How to make electricity cheaper
- What do to about North Sea Oil
- How to run a massive energy saving campaign
If you're interested or work in energy policy, climate change, or economics, this episode is essential listening.
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CHAPTERS
00:00 Introduction and teaser
01:11 Welcome and episode overview
02:30 How the war in Iran is affecting energy markets
03:57 Is the UK more exposed than other countries?
04:35 How this crisis compares to the 2022 Ukraine gas spike
07:00 Lessons from 2022: what should government do now?
09:42 When and how should government intervene?
13:05 Supporting households: targeted vs general subsidies
16:27 Turbocharging electrification through the crisis
22:16 Making the electricity-to-gas price ratio work
23:26 How to pay for it all
25:19 The North Sea oil debate
29:17 What households can do for themselves
32:08 The case for a national energy-saving campaign
33:43 The politics of decarbonisation
37:11 Closing thoughts: what should Keir Starmer prioritise?
