Electricity Supply – Driven by Politics at the Customers’ Expense? | Energy Matters

Electricity Supply – Driven by Politics at the Customers’ Expense? | Energy Matters

Guest post by David Porter, former CEO of UK’s Association of Electricity Producers and Energy UK. David has recently published a book chronicling the UK electricity generating industry that he previews here.

Most of what I read in Energy Matters fits nicely in my comfort zone. Some of it, however, collides with my prejudices and at times I am swept out of my depth by the mathematics. Never mind. Many of the subscribers to Energy Matters apply more rigour to today’s issues than those who decide our energy policy; and with policy for electricity supply, in particular. The recent questioning here of conventional thinking about the comparative level of CO2 emissions from gas- and coal-fired power stations, for example – with serious people being prepared to admit that they might have been wrong – is not the kind of thing witnessed very often at the tables where our policy-makers sit. More’s the pity.

17 minute interview with David on Energy Live News.

As a spokesman and lobbyist for the sector for many years, I used to describe electricity supply as ‘vital’. But, that under-valued it and as Bill Shankly might have said, ‘Listen, it’s more important than that’. What most electricity customers want (beware – this is an assertion, not a finding from a research project) is for it to be reliable and affordable. In that respect, public policy for the industry was always meant to be helpful. But, it lost its way. Today – 25 years on from electricity privatisation – industry figures talk openly about the increasing risk of power shortages and customers complain that they pay too much for the reliable supply that they enjoy. Power shortages and higher prices, incidentally, are exactly what many critics of the British electricity privatisation said we would see if the industry were to be taken out of the hands of government. Although the outcome may have been what they expected, the reasons for it are not. Public ownership has gone, but, public policy for the industry has replaced it. In fact, there is a vast amount of it; it is far more exposed to the public gaze than it used to be; is more volatile; is often of questionable cost-effectiveness and is apt to lead to unintended consequences.

Cont.....