On Monday, Britain’s last coal power station closed its doors for good, ending a 142-year stretch in which the fuel had powered growth through a remarkable period of economic expansion. Yesterday, OfGem raised the price cap for gas and electricity, adding roughly 10 per cent to the average household bill.
It is difficult to think of a better illustration of the needlessly damaging approach this country has taken to energy policy over the years.
While policymakers have focused on renewable energy and the rush to net zero, British companies have been left paying the highest electricity prices in the developed world. The cost of power has more than doubled over the past five years, with British firms paying almost 50 per cent more than their peers in Germany and France.
The results are plain for all to see. Britain has tumbled out of the top 10 manufacturing nations for the first time since the Industrial Revolution, while each week seems to bring a new warning that high energy prices are driving away investment and jobs.
This damage is not confined to traditional industries such as manufacturing. The future of the economy may well be digital, but the data centres used to drive services from AI chatbots to cloud computing are heavy users of electricity. It is unsurprising that Google recently warned that high energy prices are an “issue” for UK competitiveness.
With Britain headed for a cold winter and Europe a potential gas shortage, it is surely time for an energy policy that puts security and cost of supply ahead of ideological commitments. Without this foundation, we risk being left in the past.
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