Wind turbines in the North Sea of the coast of Essex, UK. Picture: BLOOMBERG/CHRIS RATCLIFFE
The disastrous combination is another headache for Prime Minister Boris Johnson at a time the country is already struggling with a shortage of workers that’s disrupted industry and retailers. On top of that, higher energy costs for consumers may damp the spending that’s helped drive the rebound from the pandemic recession.
“This is going to be a political autumn crisis,” said Dieter Helm, professor of economic policy at Oxford University and energy policy adviser to the government. “It goes together with the delusion that people have that net zero is almost costless. It isn’t.” Electricite de France is building a new nuclear facility, Hinkley Point C, but it won’t be generating until 2026.
“Soaring energy prices are sending costs for businesses spiralling and damaging industry, yet the government is nowhere to be seen,” said Ed Miliband, shadow energy secretary for the opposition Labour party.
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