Lower Incomes, Higher Energy Prices

The UK National Audit Office has questioned whether anybody in the UK has a clear understanding of the investment requirements of the water, gas and electricity industries between now and 2030.

The UK Government has forecast that energy prices will need to increase by 18% in real terms up to 2030.When one considers that those on low incomes in the UK have seen their real incomes decline by 11% in the last decade, such energy price increases are certain to place huge strains on the budgets of those least able to afford them.

What is the answer?

Given that renationalisation is an unpopular/unaffordable option and that the energy companies have a duty to their shareholders to maximise legal profits,the only solution is a new regulatory framework that limits price increases in the short-term, whilst encouraging long-term efficiency through competition and innovation.

Price control of some description is always likely to be necessary but the best way for the Public-you & me-to be protected from unfair increases is for real choice to exist.Creating an environment where choice limits price rises will take a very long time,so we need to see a start soon.

Over to the Government.

 

Wednesday, 13th November 2013

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