Some thoughts on the widely adopted view in the UK today that we should ‘Make Electricity Cheap’
- Electricity is already cheap, see what people would pay if this essential service was not available
- Electricity is not as cheap as other parts of the world and this maybe to do with UK administration cost being too high (poor regulation?), e.g. why did we allow wind to be built when the grid was not ready?
- Projects are too expensive now for us to afford so cancelling AR7 Contracts for Difference (CfD). These costs are simply delayed and not cancelled, perhaps incurring more cost later as supply chains are affected
- Why do we persist with CfD’s that don’t work, surely an availability contract that removes the investor from electricity price risk would lower the costs dramatically