By Paul Homewood
One thing I missed in the OBR’s fiscal forecasts following the budget was their assumptions about fossil fuel prices:
https://obr.uk/download/economic-and-fiscal-outlook-october-2024/?tmstv=1730904480
They are forecasting that oil prices fall by 10%, and gas by 7%, both by 2029/30.
If these work out to realistic, it will mean that renewable electricity becomes even more expensive, relative to gas-fired power.
One of the central planks in the renewable argument is that it will reduce our vulnerability to volatile gas prices.