The energy price debate we are not having

Today’s electricity price announcements will spark the usual debate about the need for cheaper energy. Gas prices come down, electricity follows. There will be calls for tighter regulation and competition. Good news and fair comment but only half the story.

What we are still not discussing in a meaningful way is the other ways in which we could produce cheaper and more sustainable energy for our region. Today we spend about 10% of our regional income importing fossil fuels. The general consensus is that fossil fuel prices will remain volatile in the years ahead as the global pressure on a depleting resource tightens. In a couple of decades it’s not beyond the realms of possibility that we might end up spending 20% of our money on imported fuels.

There is a growing school of thought that we should test regional policy to ensure it has a positive economic impact and reduces our reliance on imported fossil fuels thus giving us some protection for the vagaries of the global energy market. Experts believe that for every £1 million saved on importing fossil fuels, £10 million could be freed up to make investments in renewable alternatives. Save £4billion, invest £40billion.

The big difference is that this money invested is spent locally and not paid out to foreign companies selling us foreign gas, coal and oil. Energy policy is a devolved matter. At present customers pay for imported gas when we could be paying for locally generated renewable energy. There is enough biomass potential in this region to heat most of our rural housing. We have enough wind to meet a good chunk of our energy needs yet there is no serious political debate taking place about the opportunity for locally produced cheap energy.