Charles Moore, writing in The Telegraph this week calls on Mrs May to send a "wind of change through the great environmental debate" and says we should go back to what he calls "good old fossil fuels". This is on the basis of us importing from other "less squeamish countries countries the high energy produced goods that we used to make ourselves".
In this he is supported by a letter published in the paper from four think tanks that says the EU emissions trading system places a unilateral burden on British industry and needs to be scrapped. The letter concludes "The aim must be a cheap, reliable supply of gas and electricity to cut household bills and give Britain an edge over rivals who now pay less".
There is some truth in what they say. The USA and China do have lower energy costs but Germany, Italy, Spain and Denmark, some of our nearest competitors in Europe all pay more than we do and we have a trading deficit with them in goods. You can see a summary of electricity prices per unit in Europe HERE. Note Germany pays 30 euro cents per kw, much of which is environmental taxes, compared to our 19 euro cents, more than 50% higher yet we have a huge trade deficit with them. The USA's energy costs are half ours but we have a trading surplus with them! How does that work? According to the Moore theory it should be the reverse.
We do not seem able to face up to reality and seek to explain our poor economic performance with every sort of excuse. First it is the burden of regulations that is holding us back and now according to Charles "mad Charlie" Moore it is high energy costs. When will the penny drop? With Mr Moore I sometimes think there is no penny there at all.
The EU negotiating guidelines say they expect us to adhere to international obligations entered into while we were a member and that to ensure a level playing field in terms of competition and state aid, a future agreement "must encompass safeguards against unfair competitive advantages through, inter alia, tax, social, environmental and regulatory measures and practices". I would be surprised if we get a trade agreement that doesn't limit our freedom in the energy field. We may be able to use cheap coal but this would mean foregoing the trade deal - in other words a hard Brexit.
We used to be known as the sick man of Europe in the late sixties, if we go back to fossil fuels we will be known as the dirty old man of Europe!
