Energy bills: How Boris Johnson is still caught in a trap laid by Labour’s Ed Miliband - 02.02.22
Another government policy urgently in need of review, this time on energy, according to Gordon Rayner in the Telegraph.
Instead of allowing the market to operate freely and allow providers to compete and pass on efficiencies and cost savings to their customers, the government appears to be doubling down on Labour’s environmental and social levies as well as endorsing their price-cap model which they introduced in 2019. Initially popular with the public, its short-comings are now being exposed:
“Dr. Craig Lowrey, of Cornwall Insight, said that in addition to spiralling wholesale prices, the cost of moving customers from failed suppliers to larger more stable ones will also contribute to the price cap rising.
Failed suppliers will also be unable to pay industry levies, including low carbon levies, leaving surviving firms to pick up the bill, which will also contribute to the cap rising.”
The full article can be read here with a link to the original beneath it: