Letter: We Should Cap Energy Prices

Published on: 4 Sep, 2022
Updated on: 4 Sep, 2022

See article: More Are Worried About Fellow Guildfordians Facing the Cost of Living Crisis Than for Themselves

From: Anthony Mallard

In response to: Capping Prices Is the Wrong Approach to the Energy Price Hikes

Regretfully, I cannot agree with Mark Bray-Parry. Energy companies have made huge profits despite having allegedly paid high prices on the spot market. Likewise, the government, as a consequence of the increase in tax and other receipts.

If, despite paying these inflated prices, energy companies can achieve record profits and pay obscene bonuses to the executives and shareholders, surely something must be wrong with the pricing and Ofgem regulatory method.

Boosting real incomes is a pipedream and for some, particularly pensioners on State Benefits, the low-paid, the unemployed, and those in the public sector, is never going to happen.

Similarly, a one-off windfall tax won’t help, it will simply go into the public coffers to be wasted by those who are seemingly unaccountable for any waste of taxpayers’ money.

The short-term solution must be to cap energy prices. If the French can do it why not the UK. The long-term solution, of course, is to revise the broken pricing and regulatory system to meet the needs of the 21st century and one that is fair for both consumers and providers.