British electricity generated from coal fell from 13.1 TWh (terawatt hours) in 2013 to 0.97 TWh in September 2019, and was replaced by other less emission-heavy forms of generation such as gas. The decline in coal generation accelerated substantially after the tax was increased in 2015.
In the report, ‘The Value of International Electricity Trading’, researchers from UCL and the University of Cambridge also showed that the tax – called Carbon Price Support – added on average £39 to British household electricity bills, collecting around £740m for the Treasury, in 2018.
Academics researched how the tax affected electricity flows to connected countries and interconnector (the large cables connecting the countries) revenue between 2015 – when the tax was increased to £18 per tonne of carbon dioxide – and 2018. Following this increase, the share of coal-fired electricity generation fell from 28% in 2015 to 5% in 2018, reaching 3% by September 2019.
Increased electricity imports from the continent reduced the price impact in the UK, and meant that some of the cost was paid through a slight increase in continental electricity prices (mainly in France and the Netherlands).
Continue reading at University College London
Image via University College London