Britain’s laissez-faire approach to energy needs a good rethink

As COVID spread, Britons got used to the official message of “hands, face, space”, but as the pandemic progressed (and so forth), there was a backlash against advisories and ever-evolving regulations. Britain has long responded to public information campaigns, but people wanted more freedom to decide which risk to take. Britain’s Prime Minister Liz Truss rode that wave to come to power this summer. They raided against handouts and “Nani State”. Take back control, that Brexit message, became something more like “give back control”.

The problem is that Truss has leaned so far in its ideological opposition to interventionism that the UK government risks failing homes in the face of a winter energy crisis. It reportedly scrapped a £15 million plan to provide energy-saving advice to consumers. “We are not a nanny-state government,” Climate Minister Graham Stuart said. It seems the UK’s latest approach is to strengthen the “help for homes” website.

Compare this with the European point of view. Like the UK, EU countries provide substantial support for consumers and businesses to cushion the blow of rising energy costs. But unlike the UK, Europe is going for demand management. The EU aims to cut gas consumption by 15% and electricity use by 10% by the end of March 2023. Many countries have public campaigns to control demand, an approach that fits with the literature on how to achieve energy savings in a hurry, says Yael Parag, vice-dean of the School of Sustainability at Reichman University in Israel. “To be honest, I don’t understand the rationale behind not giving advice to people.” This can help ensure that vulnerable people such as the elderly do not take unnecessary risks.

Chile did exactly that when it faced power outages due to a drought in 2007-2008. The government offered measures to reduce demand as well as financial support for the most vulnerable. Parag recalls that when sabotage pulled out a natural gas pipeline from Egypt in 2012, Israeli radio urged people to turn off unnecessary equipment during peak hours. “You don’t need everyone to answer you; it’s enough that some do.” – Hasty changes in behavior on the scale.

Truss figures no need to tell Brits to turn off the thermometer and buy a slank. This laissez-faire approach is based partly on the assumption that Britain will not face an energy shortage because it does not have Europe’s dependence on Russian gas. Truss even went so far as to rule out a black-out this winter during her leadership campaign. And yet, Britain’s National Grid operator has acknowledged that the scenario is possible.

But even without a deficit situation, there is an economic case for stimulating demand reduction, as the UK government – ​​that is, the taxpayers – has promised some £60 billion in energy aid.

It is true that nanny states deprive people of autonomy and encourage over-reliance on handouts, which can destroy innovation and development. But given the cost savings of energy and the risk of supply problems, such objections seem absurd in this case. One in five UK families with dependent children will experience fuel shortages in 2020, and the outlook for this winter is grim given rising prices. Many families will struggle to pay their bills even with the government’s aid package.

While many websites contain information on energy shortages, the Internet can be a confusing place. Which measures provide the most impact at the lowest cost for certain properties or homes? A clear, targeted public information campaign can reduce some of the noise and focus on the options that will be most effective. Adding insulation is probably the most important step many UK homes can take, but small things like not running the washing machine or dishwasher at all, or turning to energy-saving light bulbs are also useful. Some councils are offering local “hot spots” so residents can come inside from the cold.

Of course, a public information campaign should only be part of a demand-reduction strategy. Whether to achieve the mandated net-zero target or to get through the winter ahead, a comprehensive approach will focus on food and agriculture, transportation, residential buildings, non-domestic buildings and industry, and potentially from price-signaling Will include multiple devices. Ration By comparison, the UK is very disorganized and inactive.

Truss’s dogma has already landed the government in trouble with the markets and its own party. It is one thing to hope for the best, and quite another to fail to prepare for the worst.

Therese Raphael is a columnist for Bloomberg Opinion covering health care and British politics.