A New British Energy Policy
1st November 2005 publication
Published by the Social Market Foundation, November 2005. This book analyses the paradigm shift in British energy policy that has taken place since the 1980s and 1990s. To understand the implications, we need first to set out its characteristics and then analyse how far actual policy has responded, and in particular whether the 2003 Energy White Paper meets the requirements. There follows an exposition of the key principles and considerations for the design of a new energy policy, which separates out objectives, credible targets and their delivery primarily through market instruments. In particular the case for longer-term carbon contracts and a capacity market is set out. The paper then proposes a substantial rationalisation of the institutions to deliver energy policy, both to enhance credibility and efficiency and to reduce bureaucracy, before concluding with a set of recommendations.