It was reported this week that the estimated cost of energy produced by new offshore wind farms has halved in two years. Many observers seemed to conclude that Britain’s energy problems have been solved. The truth is rather different.
Britain still has significant trouble with its energy retail market, its power generation, and its energy strategy. All three require decisive government action.
The retail market is supposed to be founded on competition, with consumers switching between companies and tariffs. In practice, only a quarter of households have ever switched tariff with the same provider, and less than half have ever switched supplier.