Smith told the Scottish Parliament’s economy, energy and tourism committee that electricity was simply too cheap to encourage people to use less.
‘Affordable energy is not consistent with climate change and saving energy,’ he said. ‘The way to reduce demand is to increase prices because people would use less.’
Smith recommended abandoning the mechanisms by which the Government regulates the electricity market, keeping the price to consumers low. He told the Scottish Parliament that pressure towards energy security and sustainable generation would lead to higher prices.
This article first appeared in the Ecologist September 2007