| Climate change and public sector debt are two of the biggest issues for modern governments and they come together in the vexed question of how far the state should intervene in energy markets. According to the International Monetary Fund, energy subsidies accounted for 8% of total global government spending in 2011 ($1.9tn, or £1.2tn), due mainly to the political appeal of keeping energy prices down.
In the UK, energy remains a contentious issue. Despite sharp falls in wholesale prices for coal and gas over the past year, household bills are as high as ever – prompting regulator Ofgem to refer the retail energy market to the Competition and Markets Authority...............................................Full Article: Source
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