(ZEROHEDGE) – While some of the recent energy price rises have been due to international market factors, part is the direct result of government policy.
I mentioned the role of carbon pricing a few months ago in pushing up the cost of electricity. Since then carbon prices have jumped even higher to £84.50 per tonne. Two years ago they were trading at below £15/tonne (via the EU scheme).
This increase has been deliberately engineered by government, in order to push up the cost of fossil fuel generation so as to make expensive renewables competitive. The policy is also to track EU carbon prices, which have also rocketed in the last two years.