UK economic recovery? Oil price shocks won’t help

22 September 2010 22 September 2010

BonTrade

The UK’s apparent economic recovery could be knocked off course by a series of 1970’s style oil price shocks, the UK Energy Secretary Chris Huhne warned yesterday pointing out there was an urgent need to reduce Britain’s reliance on fossil fuels.

Mr Huhne told a party conference fringe meeting that oil prices could double, wiping £45bn off the British economy over two years. Later he confirmed that he would ignore his party’s longstanding opposition to nuclear power to drive through a new generation of nuclear power stations.

In a speech later Mr Huhne told his party’s conference that evidence of climate change was becoming ‘more alarming, not less’ and said he wanted to see a huge expansion in the number of offshore wind farms but that this would go hand in hand with nuclear power.

Mr Huhne also announced a crackdown on energy firms which impose ‘outrageous’ oil price hikes on customers without informing them promptly. UK energy companies could also be forced to put details of cheaper tariffs on their bills, including those offered by rival firms.