Electric shock

The article “Privatisation hasn’t served us well” by Brian Wilson makes a number of interesting points in respect of infrastructure sectors in the UK. In my view, the greatest failure by governments over many years was to not recognise the damage privatisation has done to the energy sector since it was privatised in 1990.

The private companies inherited an energy sector that provided security of supply and electricity at low prices. Prices did remain stable from 1990 to 2002 but since then the price of electricity has increased by approximately 120 per cent. The increase is confirmed by the government’s figures in the Digest of UK Energy Statistics 2018, which shows the average cost to all consumers in 2002 was £300 and in 2018 was £659.

The government assumed that the “market” would resolve matters but it is clear the “market” cannot cope with decarbonising the energy sector or providing capital investment for infrastructure projects in the sector at affordable cost.

This last point became abundantly clear with the failure to build two nuclear plants, one in England and one in Wales, which are desperately need

ed if we are to reduce carbon dioxide emissions.

What is urgently required is the establishment of a National Energy Authority which will take over the role of the National Grid but also be responsible for planning and building the generating plants required. By building and owning the plants the capital cost can be met by government borrowing at low rates, which would help keep the price of electricity as low as possible.

Without this being established, the consumer can expect the price of electricity to continue to rise as it has in the past 16 years and for there to be an increase in the number of people experiencing fuel poverty. With the government proposals for electrification of transport and residential heating there is a great risk of our electricity system not meeting security of supply or peak demand by 2030, if not sooner.

C SCOTT Mortonhall Road, Edinburgh