EXPERT COMMENT
The instability of energy supply that is being experienced in the UK and around the world should be an opportunity to accelerate the clean energy transition.
The Russian invasion of Ukraine has impacted energy markets around the world and, as winter in Europe approaches, unprecedently high costs threaten to make energy unaffordable for both large portions of society and many businesses in the UK.
One of the first actions of incoming UK Prime Minister Liz Truss has been to announce significant help for domestic consumers for the next two winters and a proposed cap to the amount that consumers pay for the energy they use while a similar approach is proposed for businesses but only for six months. This package is going to be expensive. The Institute for Fiscal Studies suggests the domestic cap alone will cost more than 100 billion just for one year and both schemes will ultimately be funded by the taxpayer. This is in contrast to the EU approach, which is covering some of the costs from non-fossil fuel power generators and other energy companies making excessive profits from the high prices, and goes against calls from the UN Secretary-General for all developed economies to tax the windfall profits of fossil fuel companies.'
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