IEA - Energy price cap will not guarantee lower bills
Reaction to Conservative Party pledge to introduce cap on household energy bills
Commenting on the Conservative Party’s pledge to introduce a price cap on household energy if they win the general election, Mark Littlewood, Director General at the Institute of Economic Affairs, said:
“This type of cap is a crude intervention which will not guarantee lower bills for consumers. The move may well end up backfiring with energy companies likely to raise prices before the cap is introduced. Poorly justified political meddling will also deter new entrants, undermine competition, reduce much needed investment in the industry, and potentially put jobs at risk.
“Across Europe, price controls have failed wherever they have been introduced. There is no reason to think politicians know any better this time around. In reality a cap will do more harm than good for consumers and businesses alike.”
Notes to editors:
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
Latest News from
JRF - Rising prices and the benefit freeze make families £500 worse off14/12/2017 12:35:00
Ashwin Kumar, Chief Economist at the independent Joseph Rowntree Foundation, commented on yesterday’s inflation figures
IFG - Government must act on public inquiry recommendations14/12/2017 11:35:00
Government has spent £639m on public inquiries over the last 30 years and increasingly relies on them to examine major incidents and tragedies. But a new report finds that the process for following up on recommendations is inadequate.
Demos - New research finds Brits believe citizens, not state, should pay for retirement14/12/2017 10:35:00
A new report from Demos think tank shows that more than 57 per cent of the public believe that the individual has greater responsibility than the Government in meeting the costs of their care. And yet, the research reveals that there is a gap between citizens’ expectations and the realities of the preparations they will be able to make for their futures.
JRF - Low-paid sectors hit hard by falling real wages14/12/2017 09:35:00
Ashwin Kumar, Chief Economist at the independent Joseph Rowntree Foundation, responded to yesterday’s labour market statistics