In theory, the energy cap sets a “fair” rate for the 15 million homes that rely on default tariffs to pay for their gas and electricity by reflecting only the costs faced by energy suppliers. The price cap sets a low bar for success: stopping a family from being ripped off isn't the same as helping them thriveBut “fair” is not the same as “affordable”. The energy price control may have provided a voter-friendly sticking plaster for the problem of fuel poverty, but it also sets a low bar for success. One answer may be the introduction of a social tariff scheme, which sets an energy price at a discount to Ofgem’s cap. For too many people this winter, a price cap will provide only cold comfort.

Source: The Guardian August 01, 2021 06:00 UTC