We Could Massively Reduce The Price Of Energy In The UK - By Changing The Way We Regulate Energy Prices

29th August 2022

Richard Murphy's blog always has something interesting to say about the economic in the UK.

Today he looks at how we could reduce the price of energy. Can someone kick the government to do something along the lines he suggests.
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There is much talk happening on how to solve the so-called cost-of-living crisis. Most of it fails to recognise that the problem is much bigger than that: the whole economy is in meltdown. None seems to address the cost of energy itself. A thread on the last point....

No one now doubts that the UK has an economic crisis on an unprecedented scale. My estimates suggest 60% of households are going to struggle to pay their energy and other bills this winter whilst public services and hundreds of thousands of companies might fail.

The focus of most comment so far has been in households. Don't get me wrong. Their inability to pay matters, enormously. But hospitals, schools, care homes and businesses are also facing impossible bills.

I have set out a comprehensive plan to address this in a report called ‘Surviving 2023'. It might cost at least £144 billion to get through this winter, which only quantitative easing can provide. Let's not pretend otherwise.

However, there is a dimension to this which is not discussed at all, which is changing the way in which domestic energy is priced in the UK. The rules are set by Ofgem, the government regulator. These prices are set to make matters as bad as possible for everyone but energy companies.

What follows is a little technical. I have checked the facts with energy expert Mike Parr, to whom I am grateful, whilst accepting that all remaining errors are mine alone, having said which I think all that follows is true.

Read the full blog HERE

To keep up with Richard Murphy's blog go to https://www.taxresearch.org.uk/