Nationalising the UKs’s energy grid would be a step back into the dark ages, says IEA
Kate Andrews comments on Labour plans
Commenting on the Labour Party’s energy nationalisation proposal, Associate Director at the Institute of Economic Affairs Kate Andrews said:
“Nationalising the UK’s energy grid would jeopardise access to basic essentials, stepping back into an era of controlled industrial strategy.
“In the 1990s – the decade of liberalisation in the energy market – household electricity bills dropped by 26 per cent; alas, since 2001, they have risen by 50 per cent in real terms in England and Wales, largely as a result of government intervention and a pile-on of red tape.
“Reducing electricity costs and improving environmental standards are two compatible goals, which could be achieved by rolling back unnecessary tinkering in the industry, while simultaneously introducing a single market-based mechanism for decarbonisation, such as a carbon tax or a cap-and-trade scheme.
“But in order to keep standards high and access to energy available for all, we must resist any temptation to hand the sector over to the state.
“Countries that suffer from state-controlled energy networks fight to allow the private sector to provide these services. It would be a grave error for the UK to revert back to tried-and-failed policies, while others work hard to overcome them.”
Notes to editors:
For previous IEA research on energy markets, click here.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems and seeks to provide analysis in order to improve the public understanding of economics.
The IEA is a registered educational charity and independent of all political parties.
Latest News from
NIESR: Global growth to remain at 10-year low in 202013/02/2020 13:10:00
NIESR Press Release: Global growth to remain at 10-year low in 2020
NIESR Monthly GDP Tracker: UK Economy to grow again in 2020 Q113/02/2020 12:10:00
NIESR Monthly GDP Tracker - UK Economy to grow again in 2020 Q1
IEA - The decision to go ahead with HS2 is “highly unlikely to transform the North”13/02/2020 10:35:00
Dr Richard Wellings, the IEA’s Head of Transport responded to the news that the Government is set to approve the High Speed 2 (HS2) rail project
Govt response to Online Harms consultation threatens freedom of speech and innovation, says IEA expert13/02/2020 09:35:00
The IEA’s Head of Regulatory Affairs Victoria Hewson commented on the government’s initial response to the public consultation on the Online Harms White Paper
IEA - Government should be alert to possible unintended consequences of a “mansion tax”11/02/2020 12:35:00
The IEA’s Academic and Research Director Syed Kamall responded to reports that the Prime Minister is planning to impose a “mansion tax” on owners of expensive homes
Give GPs the right to NHS salaries in switch from system of independent contractors, says IPPR11/02/2020 11:35:00
Historic GP ‘partner model’ should be phased out in England to tackle workforce crisis, provide better care and ‘let doctors be doctors’
IFG - Former ministers reveal experiences of May and Cameron governments11/02/2020 10:35:00
Chris Grayling, David Lidington, Jeremy Hunt and James Brokenshire have given candid interviews about their time serving as ministers for former prime ministers David Cameron and Theresa May.
JRF - Break the grip of poverty to “truly level up” our uneven nation11/02/2020 09:35:00
Poverty’s grip on some parts of the UK, some families and among renters shows the scale of the challenge faced by the government in its attempts to “unite and level up” the UK following years of political turmoil around Brexit.