We have to be more courageous to help support family finances. The energy price cap increase by Ofgem takes effect today.
We should have ordered them to hold it in place & provided a credit facility to energy companies to smooth out volatility. We must not miss this opportunity again. I explained how in an article back in January:
“It is clear the current problems are the result of volatility in the global wholesale price of gas, a lack of storage infrastructure in the UK and energy companies under financial strain. The government should instruct Ofgem to hold the price cap at the current level, give family finances a break and be more courageous as we rebuild the economy from the impact of the Covid pandemic.
“The government would have to help smooth out the volatility in prices facing energy companies by giving them access to a credit facility. For example, £25billion, which they could pay interest on, as they draw down funds to get through any sudden spikes and smooth the increases over the next ten years, instead of in a single month in April. Of course, this would also go hand in hand with building more storage infrastructure and ensuring energy companies have to more actively help reduce energy consumption through better insulation.”
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