Where's the break point?
The UK's assumption about carbon costs underpins some huge programmes - not least the smart meter rollout. It has to reflect assumptions about how costs will change over the long term and can't swing on the whim of today's market.
- EU energy policies to put bills up by a quarter by 2020, says think tank
- Ofgem demands suppliers fix their ‘frankly awful’ customer service
- National Grid appoints new US executive director
- Ofgem launches campaign to help students switch
- EU 2030 emissions reduction package hailed as ‘a historic moment’
But the European Investment Bank raised about €8 per allowance - about £6.50 - when it sold allowances in the Emissions Trading Scheme to fund carbon capture and storage projects. It was thought lucky to get it. Meanwhile, the government's nominal carbon price in the CRC Energy Efficiency Scheme stands at £12. At what point does the current, real, carbon price begin to affect our long-term assumptions?
This article first appeared in Utility Week's print edition of 20 January 2012.
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