Britain's Energy Crisis: A Cautionary Tale of Misguided Policies and Imported Power

[Social Media]

 

As global leaders gather for COP29 in Azerbaijan, Britain’s energy policies serve as a troubling example of what not to do. Despite the Energy Secretary Ed Miliband’s claim that the world increasingly looks to Britain as a model, this observation may stem more from bewilderment than admiration. Britain's energy policies over the last few decades have led to exorbitant industrial energy prices, reliance on imported power, and the erosion of its manufacturing base. This scenario paints a stark picture of what can happen when policies aimed at environmental goals are poorly executed, with significant impacts on both consumers and industries.

 

One of the clearest indicators of Britain’s energy policy failure is the country’s growing reliance on importing electricity from Europe. This dependence results in job losses, diminished energy security, and a transfer of technical expertise to competing nations. As older power plants on the continent shut down, the UK may find itself vulnerable, increasingly dependent on international energy supplies that may not always be available. Data shows that net imports of electricity for Britain reached 26.3 terawatt hours (TWh) from January to September, setting a new record. Imports now cost the country £250 million a month and account for approximately 20 percent of its total electricity supply—a share that could grow to one-third by 2030.

 

British ministers often tout the reduction of domestic emissions as evidence of progress, yet they omit the emissions tied to the electricity Britain now imports. Since these emissions occur overseas, they do not appear in the UK’s statistics. In essence, Britain is offshoring its emissions while simultaneously sacrificing energy independence and jobs.

 

The roots of these policy failures span decades and administrations, with repercussions that have affected the country’s competitiveness and overall economic well-being. Industrial energy prices in Britain have more than tripled since 2004, even before the recent energy crisis prompted by the war in Ukraine. Since 2019, electricity prices have doubled, driving many manufacturers to relocate in search of lower costs. Over 200,000 manufacturing jobs have been lost since 2010, and manufacturing’s contribution to GDP has halved since the 1990s. Successive British governments, from Tony Blair’s to Theresa May’s, followed EU directives to close coal and oil-fired plants without replacing them with sufficient, reliable alternatives. These closures were driven by the need to reduce emissions but were implemented without viable backup, relying instead on intermittent wind and solar sources.

 

Britain’s electricity generation capacity has been in decline since the 1990s, marking the end of an era when it last enjoyed a power surplus. Today, per capita electricity generation in Britain is only two-thirds of France’s output and barely over a third of what is generated in the U.S. While French businesses enjoy energy costs 60 percent lower than their British counterparts, UK firms pay almost four times as much per unit of power as American companies, and households pay three times as much.

 

To address the crisis, the UK must reduce its reliance on foreign power and prioritize building reliable, home-grown energy sources. This includes expediting the construction of new nuclear plants, a sector that Britain once led globally. France, in contrast, has consistently invested in its nuclear infrastructure, generating 70 percent of its power from nuclear plants and keeping energy costs manageable. Meanwhile, Britain’s last nuclear plant, Sizewell B, was completed in 1995. Hinkley Point C, expected to start generating electricity over 30 years later, marks a painfully slow return to nuclear development.

 

The UK’s slow progress in energy infrastructure is hampered further by extensive bureaucracy. Environmental regulations and layers of red tape discourage private developers from investing in new power plants, particularly small modular reactors (SMRs) that could provide more localized and flexible generation.

 

Ultimately, Britain’s approach to energy policy has come at a high cost for households, industry, and the economy at large. This winter, the UK will rely heavily on imported power to maintain supply, with energy security reduced to a question of whether foreign suppliers can meet demand. Although British officials speak about energy security, the reality is one of increasing dependence and reactive measures. Ministers are unable to offer any clear answer on when energy costs will fall, a critical question given that Britain’s economic growth and productivity rely heavily on affordable energy. Without competitive energy prices, the UK risks further stagnation, with reduced funding for key public services and investments.

 

In the end, while Britain’s energy policies might be a valuable lesson for other nations, the cost is being paid by British households and industries. At COP29, Miliband may indeed be doing the world a “favor” by demonstrating what not to do, but this comes at a substantial cost to the UK itself.

 

Based on a report by Daily Telegraph 2024-11-15