The End of the Electric Market

Abstract

One of the objectives in privatising the electricity industry and introducing competition was to get it away from government and all the resulting inefficient influences. This was achieved for seven years with beneficial results and radically improved performance. With the election of New Labour and Tony Blair as Prime Minister in 1997 political interference returned with ever increasing enthusiasm and ever decreasing competence. The New Electricity Trading Arrangements for England & Wales was an ill-judged and superficial change which did not reduce prices nor achieve the majority of its clearly stated objectives. Next Blair wished to save the planet. The Renewable Obligation Scheme, which was the subsidy support for major renewables, pointlessly piled risk on risk on risk, thus increasing the cost of capital. In 2007 Blair signed up for the UK to achieve 15% consumption of all energy from renewables by 2020, which was converted into achieving 30% renewables in the electric industry.