4 thoughts on “The Gordian Knot of UK energy policy”

  1. Posted 21/09/2021 at 17:50 | Permalink

    The (domestic) energy price cap always was a bad policy. It had the laudable aim of preventing the establish energy suppliers overcharging their ‘legacy’ customers (e.g. pensioners with no internet access so no real opportunity to change suppliers) in order to subsidise their efforts to attract new business and to bankrupt new market entrants in the process.
    What the government should have done was, instead of applying a price cap, to apply a maximum price spread from individual suppliers. This would have prevented large cross-subsidy designed simply to put new market entrants out of business, while still allowing prices to adjust to market conditions.

  2. Posted 21/09/2021 at 21:10 | Permalink

    A good read, and bang on the money. Thank you

  3. Posted 23/09/2021 at 09:44 | Permalink

    The above article should be compulsory reading for those politicians involved in energy policy.
    From the consumers perspective and consequent upon the supplier cessations of trading, many now face the prospect of a major price hike despite the belief that they were protected by caps or fixed price contracts.
    Ofgem make a big shout about continuity of supply for those affected but should it not be the role of Ofgem to scrutinise the balance sheets of new entrants to ensure that they have the capacity to price hedge and to actually scrutinise hedging contracts? Where is the consumer price protection if energy companies are allowed to attract new customers without the wherewithal?

  4. Posted 23/09/2021 at 19:50 | Permalink

    Great piece.

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