Memo to countries going green: Don't be like the UK

Natural gas crisis highlights the limits of free markets in decarbonisation

Britain's energy sector is in chaos in part due to its poorly thought-out approach to decarbonisation. PHOTO: REUTERS

(FINANCIAL TIMES) - The UK energy sector is in chaos. Natural gas prices have tripled since the start of the year and electricity costs are soaring too. Ten retail suppliers have failed since early August, stranding 1.7 million households.

The immediate blame lies with misguided government policies that prioritised choice over stability, welcoming dozens of suppliers without ensuring that they had the necessary financial strength. But this tale of deregulation gone wrong is not just a local curiosity.

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