27 June 2019
The Government’s cap on energy prices, introduced to protect the most vulnerable customers, has led power firms to hike more prices than ever before as they treat it as a target not a limit.
Dr Maria Ioannidou, of Queen Mary University of London, who co-authored a paper on the energy price caps, said: “Does [the price cap] work? The short answer is no it doesn’t. It represents a quick fix. It’s very difficult to get the level of the cap right and, even if you do, what tends to happen is it pushes prices up.”