Titre : | A ‘Variable Energy Price Cap’ to Help Solve the Cost-of-Living Crisis |
Auteurs : | Arnab BHATTACHARJEE, Auteur |
Type de document : | Articles |
Editeur : | National Institute of Economic and Social Research (NIESR), 2022 |
Article en page(s) : | 9p. |
Collection : | Policy Paper, num. 34 |
Langues: | Anglais |
Catégories : | |
Résumé : |
We suggest transforming the single point Energy Price Cap into a variable price cap where the price per unit of energy used rises with usage (Chadha, 2022). Such a sliding price cap means that marginal user costs increase. The effect would be to reduce energy bills for lower-income households in the country while higher earners, who consume more energy, bear a commensurate share of the higher costs. This could be designed in way that does not require further fiscal spending, thereby presenting a substantially more cost-effective way to cut the energy costs of the poorest compared with freezing all energy bills. We do not propose eliminating other forms of support for lower-income families who may live in poorly insulated housing or for those who have larger families. We see this as a supplementary policy intervention to those already suggested by NIESR (Bhattacharjee et al., 2022a,b) |
En ligne : | https://www.niesr.ac.uk/wp-content/uploads/2022/09/A-Variable-Energy-Price-Cap.pdf |
Documents numériques (1)
NIESR Policy Paper 34 URL |