A leading financial expert for Deutsche Bank has warned that the cost of energy in the UK will rise next year because of renewables and upgrades to the network.
Deutsche Bank’s Martin Brough said “we expect the UK energy retail market to face upward pricing pressure in 2017 from costs of renewable energy, network investment, smart meters, capacity payments and energy efficiency.”
This latest warning is an echo of Ofgem’s prognosis that the UK’s reliance on ‘intermittent’ renewables has left the country facing an energy crisis. Andrew Wright, a senior Ofgem partner, predicted that those who cannot afford to pay more would be left with uncertainty and the wealthier would pay for more reliable electricity; he stated, ‘One household may be sitting with their lights on, charging their Tesla electric car, while someone else will be sitting in the dark.’
The impending crisis was also highlighted in October by the Chancellor, Philip Hammond, who said that ‘eye-wateringly large sums of money’ would be necessary just to keep the UK’s lights on.