Technological change and innovation in UK energy market – how might it be impacted by the price cap?
James Edgar; Which? Background With the publication of the Domestic Gas & Electricity (Tariff Cap) Bill, the UK Government is committed to introducing a temporary price cap on Standard Variable Tariffs (SVTs) and other default tariffs. There are a wide range of views about what this could mean for both consumers and energy companies. As the largest consumer organisation in the UK, Which? is concerned that the energy market is not delivering good outcomes for the majority of consumers. We understand the reasoning behind the introduction of a price cap in the energy market, but are concerned about the potential unintended consequences which may result from its implementation. There is a great deal of anticipation – within Government, Ofgem and industry – around the potential for technological change to transform the energy market in the near future. We believe that facilitating innovation, within a truly competitive market framework, can help to realise the best outcomes for consumers. The longer-term objective for the price cap must be a successful transition to an energy market where consumers fully benefit from innovation and Read more…
Categories: Academic Papers