Britain needs market reform and public ownership, not just renewables, to solve energy crisis
Source: https://www.theguardian.com/profile/mathew-lawrence. "The Iran oil crisis has proved Ed Miliband right on green energy. But households still need more help | Mathew Lawrence | The Guardian." March 11, 2026. www.theguardian.com
The Gist
The author argues that while building more wind and solar power is good, it won't solve Britain's energy bill crisis fast enough. Instead, the government needs to change how electricity prices are set and take more public control of energy infrastructure to stop private companies from making excessive profits at consumers' expense.
Conclusion
To achieve energy security and affordability, Britain must reform its electricity market structure and increase public ownership, not just expand renewable energy
Premises
- Britain's marginal pricing system means gas sets electricity prices 85% of the time despite producing only 25% of electricity
- Even with massive renewable expansion, gas will continue setting prices for at least a decade until it becomes genuinely marginal
- Private financing of energy infrastructure creates a 'privatisation premium' costing consumers hundreds of billions over asset lifetimes
- Spain and Portugal successfully decoupled electricity prices from gas through market reform in 2022, causing bills to fall sharply
- The current crisis demonstrates that expanding renewables alone cannot provide immediate relief from volatile energy costs
Assumptions
- Public financing of energy infrastructure would be significantly cheaper than private financing
- Market reform can be implemented without major economic disruption
- The government has the political will and capacity to undertake comprehensive energy system reform
- Public ownership would be more efficient than private ownership in the energy sector