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IEA - Energy price cap is “in every sense a useless policy”

Andy Mayer, Chief Operating Officer at free market think tank the Institute of Economic Affairs, commented on reports Ofgem is expected to raise the energy price cap 

“Energy prices are linked to global markets and domestic policies. After energy consumption fell during the pandemic, demand is roaring back and energy prices are rising.

“The energy price cap can’t change underlying costs, nor does it guarantee lower bills for consumers. It is in every sense a useless policy.

“To get cheaper energy we need undistorted price signals and open markets to encourage competition, not more cosmetic tinkering.

“The Government’s job is to encourage affordable security of supply. The energy price cap is a crude attempt to second-guess the market and will continue to backfire.”

Notes to editors

Contact: Emily Carver, Head of Media, 07715 942 731

IEA spokespeople are available for interview and further comment

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