Energy and Environment

Consumers won’t benefit from tighter regulations on energy companies


Monetary Policy

Low inflation rates shouldn't tempt the MPC to loosen monetary policy

Press Release

Oxfam's use of net wealth figures are misleading and unhelpful

Government action has contributed to high energy prices being sustained

Ahead of tomorrow’s opposition debate on Labour’s proposals to grant Ofgem greater powers to regulate the energy market, Professor Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs said:

“Politicians are attempting to bring down the cost of living through price controls, but fail to realise that their own interventions are responsible for the cost of energy being pushed up in the first place.

“The ramifications of politicising the issue are already being felt. Prices are being kept artificially high as the major energy companies insure themselves against a potential price freeze in May, buying up large quantities of gas and oil before prices fall even further. This, combined with a range of green policies and heavy interference from the state has prevented falling energy prices translating into lower bills for consumers.

“With the ongoing squeeze on household budgets, politicians should be doing all they can to bring down the cost of energy. Rather than heading down the path of renationalisation, the consumer would fare far better if the government was to take a back step and do away with the raft of levies and green subsidies that keep prices high.”

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Notes to editors:

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The IEA is a registered educational charity and independent of all political parties.