The Anonymous Widower

Energy Price Cap Rise Will Cost Homeowners Extra £100 A Year

The title of this post is the same as that of an article in yesterday’s copy of The Times.

This is the first two paragraphs.

Ministers were forced to defend one of the biggest energy bill increases in a decade yesterday after the regulator raised caps on prices for 15 million households by more than £100 a year.

Ofgem blamed higher wholesale gas and electricity costs as it authorised suppliers to raise prices for 11 million households on standard tariffs by 10 per cent or £117 a year from April and for four million households with pre-payment meters by £106 a year.

The well-trumpeted energy price cap doesn’t seem such a good idea now!

As a time-expired Control Engineer, I’m against putting hard limits on anything, as it distorts the equilibrium of the system.

It is much better to do the following.

  • Let prices find their own level.
  • Make certain that those who should swap, get the best advice possible.

The regulator should always ensure that the price is right for both consumers and energy companies.

February 9, 2019 - Posted by | World |

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