Copenhagen Results In Higher Energy Prices

Posted on 22. Dec, 2009 by Ross in Energy Prices, Energy Shortages, Europe, United Kingdom

Whilst power companies in the USA’s Ostrich Block are relaxing in the aftermath of a weak Copenhagen deal, their European counterparts are warning consumers that higher energy prices lay ahead as a result of the feeble international agreement on climate change and its direct effect upon the carbon market, and are calling for the market cost of carbon to be increased artificially.

Why? Unlike their counterparts in the US, European utilities operate in a business environment with strong environmental targets and an effective cap-and-trade scheme. This has led EU power companies to steer clear of investing in new coal power stations, looking instead to nuclear and renewable energy as the future.

This investment in more expensive power generating technologies - and the additional infrastructure to support it - has led to increased energy prices with further price rises expected: the UK alone is investing