The government’s 2003 Energy White Paper has environmental and energy-reliability goals at its core. It promises low-carbon energy for the UK, and recognises the tensions this would create in delivering affordable heating for vulnerable households, and competitive energy markets. Much of the task before the government is in quantifying these tensions.
In this report, Oxera provided the first quantification of the value to the economy of improved reliability and lower environmental damage from electricity generation. It estimated the value of avoiding blackouts, and of environmental harm from burning polluting fuels. These hidden benefits have been ignored in previous studies. The results and methodology are now available for stakeholders to scrutinise and to debate.