Miliband off with the pixies as Brits brace for Winter of Discontent

STT has given quite a bit of coverage on how Britain’s insane rush to install hundreds of giant fans has led to power-price-penury in Ol’ Blighty – see our posts here, here and here.

But it seems that energy policy hypocrisy in the UK has a new name – “Ed Miliband”.

Ed apparently believes Britain can continue to roll out countless giant fans, rely upon wind power produced at crazy, random intervals and have low power prices at the same time.

We have it on good authority Ed also believes in the healing powers of crystals and that he takes his economic advice from leprechauns and pixies.

Mr-Bean-Leprechaun-96450

Ed Miliband’s Energy Market Adviser.

Here’s The Time’s take on Ed’s latest trip to Wonderland.

Green freeze means an expensive future
The Times – reprinted in The Australian
Matt Ridley
27 September 2013

HYPOCRISY can be a beautiful thing when done well. To go, as Ed Miliband has done, within four years, from being the minister insisting that energy prices must rise – so that uncompetitive green energy producers can be enticed to supply power – to being the Opposition Leader calling for energy prices to be frozen is a double axel that would make Torvill and Dean envious.

This is the man who even this week pledged to decarbonise the entire British economy by 2030, meaning that nobody will be permitted to heat their house with gas.

Has he checked the price of electric heating versus gas recently? The gap is due to grow greater. By 2030 much of the electricity will, in theory, come from offshore wind, which is being promised three times the price that gas-fired power stations get for making electricity. So Miliband is telling us to treble, and freeze, our heating bills at the same time.

“There is not a low-cost energy future out there,” Miliband the Energy Secretary said in July 2009, insisting that we learn to live with higher energy prices. “We can work together on the basis of this price freeze to make the market work in the future. Or you can reinforce in the public mind that you are part of the problem,” Miliband threatened energy companies yesterday.

A Liberum Capital report in April suggested that when the energy-price crisis came, the government of the day would heap most of the financial pain on to investors by insisting that they cut profits. That day has arrived early. Miliband has effectively admitted that he will try to delete investors’ return on equity rather than take any blame for the huge bills that will drive people into fuel poverty.

Liberum calculated “if the investment does take place we see electricity bills rising by at least 30 per cent by 2020 and 100 per cent by 2030 in real terms”.

There has never been a price control that did not crimp supply. The US controls on gas prices, instituted in the 1950s on the belief supplies were limited and meant to protect consumers from monopoly pricing, ended up causing shortages and high prices. Nobody wanted to look for gas if the price was fixed by the government. After controls ended in 1989, the US was awash with gas and prices plummeted.

“If (energy firms) Centrica and SSE cannot make any money supplying electricity to the retail market then they won’t supply it. The lights will go off,” said Neil Woodford, the head of equities at Invesco Perpetual.

Shed no tears for the energy firms. They went along with the crony-capitalist plan for driving up costs, mouthing green platitudes that gave them cover for price rises.

It’s possible the energy firms, and the ministers they have lobbied to allow prices to go up, will realise they should have been championing cheap energy all this time. If so, there is a silver lining. This just might tear up the cosy consensus on energy policy that has driven the current Energy Bill through parliament so far. After all, the public will get the impression that Miliband is standing up for consumers, albeit against the wrong enemy. David Cameron risks looking like a friend of crony capitalists.

When he came to power, Cameron thought energy policy didn’t matter much. In fact, affordable energy is crucial to economic recovery.
The Times

Get ready Britain for another long, cold “Winter of Discontent”.

winterofdiscontent

About stopthesethings

We are a group of citizens concerned about the rapid spread of industrial wind power generation installations across Australia.

Comments

  1. Ed MINIBRAIN – to give him his proper title – said, and I quote: “It should be socially unacceptable to object to wind farms”. He is a Gigatwat!

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