Scrap energy price cap to prevent further bailouts, says IEA Analyst
Andy Mayer, Environment, Energy and Infrastructure Analyst at free market think tank the Institute of Economic Affairs, commented on the £1.7bn taxpayer bailout of Bulb Energy
“While the energy price cap remains, and each Bulb customer is costing the company an average of £400 per year more than they can charge, there is no prospect of rescuing the business.
“This ‘loan’ is a bailout. Taxpayers will pay for both their own bills and Bulb’s, all to maintain a political fiction of low energy prices.
“A fiction that also means private investment will drain from the market provoking further collapses and limiting the prospect of a supply side response to reduce the cost of gas.
“The government needs to stop tinkering at our expense, fix the source of the problem, scrap the cap today and open the spigots to domestic fracking and storage tomorrow.”
Notes to editors
Contact: Emily Carver, Head of Media, 07715 942 731
IEA spokespeople are available for interview and further comment.
Latest News from
The King's Fund responds to the Government's adult social care White Paper02/12/2021 09:35:00
Sally Warren, Director of Policy at The King’s Fund commented on the publication of the government’s adult social care reform White Paper, People at the Heart of Care
CMA order for Meta to sell Giphy could undermine digital trade and innovation, says IEA regulation expert01/12/2021 10:10:00
Victoria Hewson, Head of Regulatory Affairs at free market think tank the Institute of Economic Affairs, commented on the news that Facebook’s parent company, Meta, has been ordered to sell Giphy by the UK’s Competition and Markets Authority
JRF responds to extension of Scottish Child Payment30/11/2021 15:15:00
JRF responds to the Scottish Government's plan to double Scottish Child Payment for children under six from April, and all eligible children under 16 by the end of 2022.
New ‘pingdemic’ could cost economy at least £2 billion, says economist30/11/2021 11:35:00
Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, commented on the planned reintroduction of some Covid measures
IFS - Education spending changes put a major brake on levelling up30/11/2021 10:35:00
The cuts to education spending over the last decade are effectively without precedent in post-war UK history, including a 9% real-terms fall in school spending per pupil and a 14% fall in spending per student in colleges.
The King’s Fund responds to the Health and Care Bill workforce vote24/11/2021 16:25:00
Richard Murray, Chief Executive of The King’s Fund, commented on MPs voting against a plan to require the publication of health and care workforce projections
IFS - English universities ranked on their contributions to social mobility – and the least selective post-1992 universities come out on top24/11/2021 12:10:00
Universities are seen as crucial engines of social mobility, and perhaps with good reason. Individuals eligible for Free School Meals (FSM) in year 11 who attended university are almost four times more likely to be amongst the highest 20% of earners at age 30 than those who did not, and around ten times more likely if they attended one of the four most selective universities in the country.