Easing inflation

I have great respect for economist John Mclaren and always read his articles with interest and care, but when he says that there is no way of easing inflation because it is imported, and that the only possible action is making distributional choices, he is, frankly, wrong (Perspective, 16 November).

A news item the previous day highlighted the fact that electricity prices are tied to gas prices and have escalated along with gas prices – such that a kwh of electricity now costs more than three times as much as a kwh of gas, even though renewable energy produced by solar, wind or nuclear is much cheaper.

The reason for this is a UK pricing decision/convention which ties the price of electricity to that of gas, regardless of how it is produced. This decision is unnecessary and adds some £18 billion to energy bills, as well as gifting excess profits to green energy producers.

Westminster could and should change the pricing convention and so, at a stroke, reduce the energy bills of nearly everyone in the UK. At the same time they could remove the requirement of bill payers to pick up the costs of the failed electricity companies which are there as a result of a UK government decision to privatise energy supply and then regulate it poorly.

There are definitely things which can be done in the UK to reduce inflation, even if that part which comes from international causes cannot be affected. The pricing scandal is something which deserves front page banner headlines, not a small news item on page 9 (News, same day).

JUDITH GILLESPIE Edinburgh