Economist: The charges of the light brigade

BRITAIN created the first electric light bulb and a pioneering national grid. Then, in 1990, it built one of the rich world’s most liberalised energy markets. For years it enjoyed low prices and lectured other countries about the virtues of deregulation. Not for it French-style state-owned monopoly utility firms. But the country has gradually lost faith in a free energy market. A bill published on May 22nd signals a drastic change.

The bill is a response to two developments. One—particularly worrying to politicians—is rising electricity prices. The second, further off, is a looming capacity crunch. Roughly one-fifth of Britain’s existing power stations are due to be retired within the next decade, and if the country is to meet its EU targets, new capacity must come from low-carbon sources.  MORE