How Ed Miliband plans to conjure electricity out of nothing

Electricity is magical stuff. From a couple of tiny holes in a wall comes an apparently endless supply of invisible, weightless, silent ether that turns instantly into light, heat, motion or information at your command. It is a metaphor for the modern economy: we use pure energy to create useful outcomes in the real world.

We found out last week that Britain has now for the first time achieved top spot, among 25 nations, in terms of the price we pay for this supernatural ichor, for both domestic and industrial use.

This is a disaster. Electricity prices have doubled in Britain since 2019. They are 46 per cent above the International Energy Agency’s median for industrial and 80 per cent above the median for domestic electricity. As the independent energy analyst David Turver points out, British business pays almost four times as much as American business for each unit of power and British consumers pay almost three times as much as Americans. And that is last year’s data, before Ed Miliband has even started on his policies to accelerate decarbonisation: all the technologies he champions are more expensive than gas.

High electricity prices make companies based here less competitive, so some will leave or die; and consumers less well off, so some will freeze and all will buy less of other things: a drag on both production and consumption. Consumers pay for high electricity prices both when we use it and again when we buy things that have been manufactured or refrigerated with it. Given that the plan is for us all to use a lot more electricity in the future, for cars and home heating, this is alarming news.