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Energy 'too cheap', says Scottish & Southern


24th September, 2007

It’s not what you'd expect to hear from a player in the fiercely competitive utilities sector, but Brian Smith, head of projects at Scottish and Southern Energy, has said that electricity is ‘too cheap’.

Smith told the Scottish Parliament’s economy, energy and tourism committee  that electricity was simply too cheap to encourage people to use less.

‘Affordable energy is not consistent with climate change and saving energy,’ he said. ‘The way to reduce demand is to increase prices because people would use less.’

Smith recommended abandoning the mechanisms by which the Government regulates the electricity market, keeping the price to consumers low. He told the Scottish Parliament that pressure towards energy security and sustainable generation would lead to higher prices.

This article first appeared in the Ecologist September 2007


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