Dieter Helm discusses our unrealistic energy policy
Dieter Helm highlights the increasing issues arising from our Net Zero policy, showing that costs will only rise further and for longer, whilst making the system less secure.
Professor Sir Dieter Helm has just published his latest thoughts on the UK’s Net Zero energy policy. His critical assessment of the direction of the UK’s energy strategy British energy policy – not cheap, not home-grown and not secure makes sober reading.
He introduces his article with this statement:
Some people – and some politicians – seem to believe that if you keep repeating claims eventually they will be believed, even as the evidence unfolds that they are obviously just not true. Any countervailing evidence is merely to be reinterpreted as if it is consistent with the claims, however great the contortions of the truth may need to be.
He goes on to say:
This helps to explain the lines that DESNZ keeps trotting out about renewables being much cheaper, that they are more secure because they are home-grown, and that bills will be coming down. In the hands of politicians, this translates into claims like “renewables are nine times cheaper”, £300 will be coming off your bills, and anything to the contrary is “climate vandalism”. All of these claims have been made by the current Secretary of State.
Helm is clear that claims by government bodies about renewables being cheap, home-grown, and increasing security are false, presenting evidence that the UK has some of the highest industrial electricity prices globally. The only ways to read this are as follows:
The government does not understand the energy system it is responsible for, or
The government is actively lying to us
Take your pick, though neither is forgivable given what is at stake. I guess it could be a combination of both!
He goes on to explain that that current policy decisions are “baking in” very high energy costs until at least 2040 through long-term contracts for intermittent sources like wind and solar, which require costly grid expansion and back-up gas power.
Furthermore, Helm asserts that dependency on foreign imports for technology, manufacturing, and finance means the energy system is far from “home-grown” and that closing down North Sea gas production makes the nation more vulnerable to supply interruptions, contradicting official security assurances.
He concludes by proposing radical policy changes to mitigate the long-term economic damage caused by the current trajectory. These policy changes would not favour renewables, and hence will be ignored by the present government - at least for the next four years, should it last that long.
About Dieter Helm
Dieter Helm is Professor of Economic Policy at the University of Oxford and Fellow in Economics at New College, Oxford. From 2012 to 2020, he was Independent Chair of the Natural Capital Committee, providing advice to the government on the sustainable use of natural capital.
He provides extensive expert advice to UK and European governments, regulators and companies across three key areas: Energy & Climate; Regulation, Utilities & Infrastructure; and Natural Capital & the Environment.