The surge in wholesale electricity prices this week underlines the need for urgent investment in Britain’s electricity infrastructure.

It should also be a reminder to politicians of their role in creating the right climate for the huge long-term investments required. The key to this is stability of policy. And that is just what the industry does not get.

Five years ago, Patricia Hewitt appeared to sign the death warrant for nuclear power in a White Paper that staked the UK’s future on a big increase in wind energy. Last month, her successor, John Hutton, boldly told the Labour Party conference the future was all about new coal and nuclear plants.

The uncertainties are increased further by the likelihood of a change of government in the next year or so. The Conservatives have already said they would tear up the current system designed to encourage investment in renewable energy and introduce a German-style subsidy regime.

The party makes mixed noises over nuclear, although it is thought to be broadly supportive.

To complicate matters further it is not just the policies set by Westminster that are unpredictable.

European environmental rules seem to change on a monthly basis, while Edinburgh and Cardiff are also flexing their muscles increasingly in energy policy.

It is perhaps a measure of Labour’s commitment to stability that energy policy has been in the hands of no fewer than eight ministers over the past six years. Let’s hope it doesn’t change hands again in today’s mini reshuffle.

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