Sunday, 13 October 2013

Government Energy Policy Starting to Backfire on Politicians

I'm currently a SSE customer and today I received a letter from the company advising me of the rise in energy prices.

Unusually, the letter lays the reasons for the rise firmly at the door of successive governments.

It says: "We've worked hard to keep prices at their current level and delay an increase for as long as possible, but unfortunately we will have to put your energy prices up on 15 November 2013. There are many reasons for this, including the rising cost of energy efficiency programmes, support for low-carbon energy and help for vulnerable customers. While we support the aims of these Government-sponsored initiatives, they do come with a cost. In addition, the need for investment means the cost of using the electricity and gas networks has increased, and the cost of the energy we bought for this coming winter is higher than it was from the same period last year."

Hmm, Drawing a line in the sand? This far an no further government meddling in energy company affairs? Pointing the finger squarely at the reason for price increases? Or just sour grapes that they're being made scapegoats?

All I will say is get yourself a portable heat source and some battery-powered lighting. Forewarned is forearmed and reading between the lines I see interesting times ahead as we get to see who eventually backs down. Expect the full arsenal of energy cuts to be enacted in support of the energy companies power play.

How the government reacts will be interesting given that their hands are tied by EU energy policy. Can they react, can they change policy, are they allowed by their EU masters?

It seems both ships are lashed firmly on a collision course. Batten down the hatches and brace for impact!