The promised end of rip off energy prices is a headline grabbing policy but simply makes zero economic sense.
British Gas has already stated if it cannot raise prices it will ‘slash’ jobs.
Economically a single job loss of an employee earning £20,000 .00 will lose the government a minimum of £1,800 in income tax. This takes no account of the state benefits that would then need to follow the redundant employee.
The stated saving per household through a price cap is £100 per year. Simple mathematics tells us this is not an economically viable policy!
Governments cannot have their cake and eat it. They cannot expect an industry to transform from dirty to clean energy without capital to do so. The energy companies have to pay for the transition to green energy that the government has signed up to, their only way to raise the capital required is through the cost of their product.