This chapter explores claims made by policy makers in the UK that, despite having no control over global energy markets, existing policy protects households vulnerable to fuel poverty through the regulation of commercial energy suppliers and specific policies that provide cash transfers and energy-efficiency measures. Keeping energy prices low is an essential part of the UK government's approach to fuel poverty alleviation, but this task is a complex one in which the steering capacity of the nation-state often seems weak and its capacity hollowed out. This is exacerbated by a neoliberal policy direction that funds environmental and social policy measures through charges on energy bills rather than through tax-funded programmes. The chapter then argues that existing policy has been somewhat contradictory in its view of the government's power to steer energy markets. While the Department for Energy and Climate Change suggested that the UK has no control over the global energy market, this does not match political rhetoric, which has emphasised the importance of increasing domestic energy security in order to spread risk and reduce dependence on politically unstable fossil fuel-producing states, and has also seen political pressure placed on the six main energy companies to lower energy charges to consumers.
Market Power, Fuel Substitution and Infrastructure: A Large-Scale Equilibrium Model of Global Energy Markets
