Taxpayers should not bail out energy firms, says IEA expert
20 September 2021
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In the Media
Chartered Institute of Taxation cites IEA research
18 September 2021
In the Media
Economic Theory
11 November 2024
Responding to reports that taxpayers face a multibillion pound bill to bail out energy companies, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“The poorest households should be protected from soaring bills, but the taxpayer should not be expected to write a blank cheque to bail out energy companies. Market forces need to be allowed to work and if this means that relative prices have to change to balance supply and demand, then so be it.
“There may be a case for government loans to fundamentally sound businesses which are facing temporary problems as a result of global shortages. However, these companies should still be expected to borrow on commercial terms. Otherwise, there is a risk that the industry fails to adapt and that it remains vulnerable to further shocks.”
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Contact: Annabel Denham, Director of Communications, 07540 770 774
IEA spokespeople are available for interview and further comment.
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