British Government Pledges

Venezuelan Style Electricity Price Caps
hows that working out for Venezuela?
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Faced with mounting voter anger over green policy driven electricity price rises, a precarious, under-resourced energy grid, and with a national election looming June 8th, the British Conservative Government has responded by promising Venezuelan style price caps on domestic electricity bills.

UK Conservatives pledge energy price cap, hitting utility shares

• Britain’s ruling Conservative Party said it would cap domestic energy prices if it retained power in an election in June, targeting an industry it accuses of not working properly and sending shares in the leading providers down sharply.

• Shares in British energy suppliers Centrica and SSE fell as much as 5 percent, and were last down around 3 percent, after ministers said the Conservative’s election manifesto would include pledges on controlling energy prices.

• Energy bills have doubled in Britain over the past decade to about 1,200 pounds a year, angering consumers who face rising inflation, and drawing the ire of politicians ahead of a June 8 national election. Energy companies say higher prices reflect increased wholesale costs and environmental levies.

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• Centrica condemned the proposal as against consumers’ interests. The proposals made Centrica and SSE the biggest fallers on a FTSE 100 index which was up 2.1 percent.

• “Price regulation will result in reduced competition and choice, stifle innovation and potentially impact customer service,” Centrica Chief Executive Iain Conn said in a statement.
  

  
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