Thursday, March 5, 2015
Labour’s plans for a “freeze” on energy prices could put fast-growing new energy suppliers out of business, according to Professor Michael Pollitt.
Speaking at a Cambridge Judge Business School meeting in London, Pollitt characterised the policy, saying it “appears to be a commitment to a binding price freeze residential and non-residential bills for at least all non-half hourly metered customers”.
He said there could be several outcomes of a freeze. If it was successful, “Capping prices in competitive markets leads to shortages,” he said.
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