Energy and Environment

The Lower Energy Price Cap Remains a Troublesome Policy



Julian Jessop quoted in The Daily Mail


Julian Jessop quoted in The Express, The Financial Times, and The Mail

Andy Mayer writes in CapX

The IEA’s Chief Operating Officer and Energy Analyst, Andy Mayer writes about OfGem’s latest decision to reduce fuel energy bills this summer.

Andy writes:

“In the medium term the restrictions on competition will mean a smaller number of larger suppliers, less innovation, and the resultant costs hidden somewhere, either on taxes or bills. But payment will surely be due over the years to come..

“Voters will not thank the Government for this mess. We all remain worse off. Being a little bit less worse off each much is a relief, not cause for celebration or gratitude. The opposition, meanwhile, are correct to adduce that no one is taking their mad ‘net zero power by 2030’ plans seriously, or that voters won’t realise it would mean permanently higher bills.

“A braver administration would scrap the controls, restore energy markets, and support those in genuine need if there is a second crisis. A wiser one would focus their energies on the supply side, relaxing planning and permitting, opening UK sites for gas exploration, and attracting investment through a guarantee to support consistent, lower and stable taxation.”

Read the full article here.