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UK launches inquiry into Energy Policy

The House of Lords Economic Affairs Committee has launched a new inquiry into the economics of the UK energy market.

The accelerated closure of coal-fired power plants, and subsidies for renewables, have been the principal means of securing decarbonisation. Paying for subsidies by charges on consumers, rather than from taxes, has meant that prices have risen while the resultant lack of investment in baseload capacity means that continuity of supply is now seriously threatened. This suggests a dysfunctional energy market or a conflict of government policies.

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