Energy Bills Rise Due to On-going Infighting in UK Government
UK government ministers are in a drawn out battle over energy and climate change policy.
This political risk for investors is sending the cost of new power infrastructure soaring, says an industry insider. Bill payers will pick up the tab.
"Banks are horrified about how risky all this has become."
The polls are in, the decisions have been made....and it seems as though chancellor George Osborne got his way. The UK will focus most of its efforts on a dash for gas, hoping to develop a shale boom and see natural gas prices plummit inline with US prices.
Renewable energy will receive little investment, and could therefore fall by the wayside.
Non of this is to say that the infighting will cease, or that banks will drop their cost of capital.
Ed Davey is trying to claim a victory in the negotiations.
I suppose only time will tell.
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