In this Institute of Economic Affairs interview, IEA Energy Analyst Andy Mayer speaks with David Turver, author and independent energy writer, about his chapter in the IEA’s forthcoming book, The Great Stagnation: Why Britain Stopped Growing. The conversation covers why the UK has the most expensive industrial electricity prices in the developed world, how renewable subsidies and grid costs have driven up bills, and why cheap, abundant energy is a fundamental requirement for a prosperous economy.
David explains how energy use has declined per capita and in absolute terms since 2008, with the UK now using less energy per person than countries such as Belarus and Uzbekistan. He sets out the various renewable subsidy schemes, including the renewables obligation and contracts for difference, and how ballooning transmission costs are pushing bills higher still. The discussion also covers the practicalities and costs of alternatives such as nuclear power and gas, and how planning delays and regulatory hurdles are driving up the price of new infrastructure across the board.
The interview concludes with a look at the wider consequences of high energy costs, including the decline of British steel and fertiliser production and the broader deindustrialisation of the economy. David argues that energy costs are one of the most significant, if underappreciated, drivers of the UK’s growth struggles since 2008.
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