Why advocate liberalisation when the largest price increases have been in the most liberalised country (U.K.)?
Competition is a mechanism to ensure efficient investment, so that prices are as low as possible over the long term. Liberalisation sharply reduced U.K. prices, and for many years they were among the lowest in Europe. As the U.K. becomes a gas importer, U.K. gas prices are sending a signal to motivate investment in new gas supply infrastructure. This is an example of how competitive price signals underpin security of supply. U.K. power prices also have in turn been driven up by gas price increases, but that is a general factor that has increased power prices across Europe.
