Onward report on energy policy: comment

We’re looking at the possibility of two gas price crises in just a matter of years, so the learning has to be that gas dependence is a real risk to household and business energy bills. Continuing to ramp up renewables and installing net zero technologies like electric heat pumps requires investment, but will insulate the UK from these shocks which are often driven by conflict. Without any carbon taxes the UK could end up transferring income from HM Treasury that funds public spending to the EU given it has introduced its carbon border adjustment mechanism.

“The official statistics show that the North Sea will continue its inevitable decline with or without new licenses and let's be clear that experts say new drilling won't make any real difference to UK bills given gas is traded on international markets. The Windfall Tax is popular with the public, and with continued conflict likely to result in a higher profits for oil and gas companies again while households and businesses see higher bills, the public might well see removing it at this time as odd."