Andy Mayer, IEA Energy Analyst, has written for CapX on the failure of Ofgem’s energy price cap to lower underlying costs.

Andy argues that adjusting welfare would be the most effective means of ensuring that consumers are able to pay their bills and that allowing the energy market to function naturally will allow customers to find the best deals.

“The whole notion of a ‘price cap’ is really an illusion. It sounds like it means lower energy prices, when in reality higher costs will turn up somewhere, be they on bills, future bills, or the taxes required to pay for increasing borrowing.”

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