Huhne is not telling the truth
Oct 20, 2011
Bishop Hill in Economics, Energy: costs, Huhne

Andrew Neil, writing at his BBC blog, has done some thinking on UK energy prices.

...retail prices have risen again and are now above their 2008 peak. Despite lower wholesale prices compared with three years ago our fuel bills are higher than three years ago.

So, contrary to the Energy Secretary's position, higher fossil fuel prices cannot explain our current very high energy bills. And, contrary to the energy companies, they are not merely passing on the extra wholesale costs of energy.

Two further thoughts. It is clear that the energy market is not functioning like a proper competitive market, otherwise retail prices would not just go up in line with wholesale prices but come down too.

And maybe the Huhne green agenda, involving huge subsidies to wind generation, which end up on all our fuel bills, is much larger than we've been told.

This is a good point. Huhne is telling us things that can't be true about energy prices and meanwhile refuses to release his own figures on the impact of his green energy policies.

Would it be wrong of me to be suspicious?

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