, Columnist
Bigger Shocks Are Coming With Your Electricity Bills
Forward contracts are baking-in huge price increases for the UK and Europe.
This article is for subscribers only.
An oil crisis hits the economy like a big wave breaking on the beach: The impact is immediate and dramatic as the crest plunges onto the shore. An electricity crisis is another kind of shock: Akin to a rising tide, it is slow but relentless and then, surprise, you are overwhelmed.
The difference explains why policymakers and investors focus on oil and tend to ignore electricity. That’s a big mistake because another big predicament over electricity prices is coming, not unlike the one Europe weathered late last year.