Imagine a sausage factory – the luckiest, most profitable sausage factory in the world. Its machines crank out their sausages, and lorries carry them to supermarkets. So far, so normal.
But this particular factory makes as many sausages as the management and staff choose. If they feel like taking the day off, the lorries and shelves stay empty. If they want to go a bit wild, they sometimes make so many sausages that there aren’t enough lorries to take them away. Or they carry on cranking out sausages even if the shelves are already full.
And here’s the really amazing thing: even when the lorries can’t cope or there is no demand for sausages, the factory gets paid. Indeed, they get paid more for not sending the sausages to the shops than for sending them. This is such great business that the factory is actually building an extension, so it can threaten to make even more unwanted sausages.
Does all that sound completely mad? Of course it does. But it’s what happens in the British electricity industry – where the blackmailing, money-printing sausage factory is a wind farm in Scotland.
Read it all at CapX…