WATCH: Labour’s new PPB on energy bill freeze

24th September, 2013 4:42 pm

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  • charles.ward

    Price controls, they always work! What a great way to encourage investment in our energy infrastructure, take £4.5 billion from the energy companies, that’ll make ’em invest!

    And who will end up paying for this price freeze? Everybody who has a pension as energy company share prices plummet. You’ve heard of stealth taxes, now introducing … stealth borrowing, it’s not government debt if we take it out of your pensions!

    • Daniel Speight

      I think a good case could be made for a windfall profits tax which may have forced the energy companies to put more into investment. Then again there will be very little public sympathy for these companies because of the greed they have shown in the past. It really points to a lack of forceful oversight and regulations put in place during the privatization of Britain’s energy supply. Something very similar could be said about the railways.

  • jaime taurosangastre candelas

    It is a noble aim, but I suspect that the only way he will be able to achieve it is by getting rid of the green taxes that are a growing component of every energy bill.

    The energy companies need to make “reasonable”*** profits to carry on investing in new infrastructure, and they are largely unable to do anything about global supply and demand. If there is a supply difficulty anywhere in the world, then global prices rise. It is unreasonable to expect British energy suppliers to make a loss because Government policy is to hold prices frozen, so either they stop investing in the UK infrastructure, or evening supplying the UK at all, or the Government drops the green taxes and stops the nonsenses like feed in tariffs for the windmills which we all pay for.

    That would not be a bad solution, as there is little evidence to show that UK green energy taxes are doing anything at all to halt global warming. Not when the UK allows the largest developing nations to massively increase their emissions, as is happening.

    *** If they make “unreasonable” profits, then by all means hold down their prices. But who is to say what is reasonable and what is not? The regulator, presumably, but it will not be instant decision making, and will always be in arrears of publishing profits made. So perhaps we pay up front, and then get a rebate if the profit is judged unreasonable? Or maybe we pay a reduced amount, and then face demands for more money if the energy companies win their case?

  • Monkey_Bach

    Well, from a green perspective, this policy would certainly put the mockers on privately financed nuclear power stations. Eeek.

  • JoeDM

    In 1998 the State of California imposed a price freeze on retail energy.

    The result? Dozens of power cuts

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