Scrap energy price cap to prevent further bailouts, says IEA Analyst

From: Think Tanks
Published: Fri Nov 26 2021


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.

Company: Think Tanks

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