British households are having their "pockets picked" by foreign energy firms to subsidise customers in their own countries, the Government’s new consumer champion has said.
I\’ve no doubt that they would like to (any firm would like to pick the pockets of its customers) but I\’m not sure that I can see the mechanism by which they can.
Britain’s energy bills have risen more quickly than on the Continent, where governments have manipulated markets to protect customers.
OK, but I still can\’t see how this affects us.
Mr Mayo said households were suffering because foreign companies — often owned by the state — faced no competition at home.
"Closed and protectionist European energy markets end up picking the pockets of consumers in this country," he said.
I\’ve no doubt that both those things are true as well….that some companies have no or little competition at home and that rigidities in the markets do cost our own consumers dear.
But it\’s that first bit that I\’ve got the problem with. Just how are these companies charging us more to subsidise their home consumers? In the UK they are in a competitive market so they cannot just charge what they wish.
So how does this mysterious process work, anyone know?