Government failure not war in Ukraine is to blame for skyrocketing UK electricity bills, former Conservative Advisor says.
Dieter Helm, who wrote the cost of 2017 of Energy review interrogated ministers trying to shift responsibility to Russia invasion how he attacked the “derailed” privatization model for energy and water.
Away in Kyiv last Boris Johnson said the British were suffering from a surge in bills as price The West must pay for standing up to the aggression of Moscow.
outgoing prime minister said: “We know what if we pay in our electricity bills for evil of Vladimir Putin people of Ukraine pays in their blood.”
But Sir Dieter pointed to market system this does not fit for goal”, erroneously arguing this fixes prices on cost of gas – also transfer of “surplus profits” to producers of renewable energy sources.
Average check to rise to £3,549 in October – and expected to top £5,300 from January – despite the UK importing almost no gas. directly From Russia.
“Clients faced with high bills are paid too much because government failed reform market”, – he said Financial Times.
former advisor, now economist professor at Oxford University, argued that both energy and water were “too important to like any other commodity,” as privatization allowed.
The sectors were blown up by “revolving doors and pig barrels.” politics, heavily influenced by vested interests, with interest in complexity that is lobbying dream”.
This led to “inevitable consequences of poor regulation and bad results for clients, Sir Dieter added.
He named for and Ofgem and Ofwat, watchdogs for energy and water, respectively, must be reduced and replaced with new stronger regulators. for each whole system.
It follows anger over water companies that discharge wastewater into the rivers and seas of England and lay hoses bans while at the same time not closing leaks that deplete supplies and paying their bosses mind-boggling sums.
Independent disclosed how Liz Truss failed hold any meeting with water bosses over dumping of Raw sewage in two years as environment secretary despite practice declared illegal.
Likely next prime minister is in in firing line over the sewage scandal after records showed that her only conversations were a discussion of a bug involving severe stomach upsets.
“It is no coincidence that both water and energy privatization models have run into serious trouble. After more than 30 years old, none fit for goal. And their regulators,” Sir Dieter told reporters. Financial Times.
In terms of energy he added: “ofgem is not the same vehicle. Energy needs system regulation, not institutional confusion with Ofgem in total charge.
But Ofgem said: “We are confident that Ofgem’s regulation is robust, combating any supplier malpractice and putting consumers protection in the heart of what are we doing.” Offvat declined to comment to paper.
