Policy

The decline of North Sea oil and gas production continues. The trend is now a problem not just for the Scottish Nationalists but also for the UK Treasury and the 450,000 people who work in North Sea related businesses. The deplorable thing is that the decline is unnecessary and could be halted. Read more

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Many revolutions fail. They run out of ammunition or leaders or popular support. We hear a lot about the revolutions which succeed. History is written by the winners. But we hear much less about the failures – the promises of change which don’t materialise. Read more

Week by week Scotland seems to slip away. The reaction to the fiasco at the CBI demonstrates just how sensitive business is to involvement in politics. But the future of the United Kingdom is a matter on which business should have a strong and clear voice. In its absence the momentum behind the cause of independence will grow. Read more

The subtle redesign of Germany energy policy agreed by the government in Berlin last week sends some important signals not for the German market but for the rest of Europe. Far from damaging the renewables business the move could be the salvation of the sector. Other countries, the UK included would do well to adopt similar measures. This would be the most effective way of responding to the urgency expressed in the latest IPCC report. Read more

The full-scale competition review of the UK’s energy market which will be announced later this week is a challenge the industry should welcome. The inquiry will absorb a huge amount of time and effort over the next year but it offers the chance both for the industry to clear its name by removing the cloud of public suspicion over pricing policies and simultaneously for individual companies to examine their own strategic positioning in a market which is changing rapidly.

Of course, the competition review will add to uncertainty and will reinforce the reluctance to invest in new generating capacity, which is already evident, but the sense of doubt will exist in any case, and the review may help to produce some longer-term clarity. In the short term the government will have to find a new mechanism to ensure that supply is adequate to meet demand – and doing so with an expensive plan for emergency electricity supplies. But that is a separate issue from this fundamental analysis Read more