Energy companies are morally wrong to increase bills by more than the wholesale cost of gas and electricity, David Cameron has suggested.
Monstrous fucking stupidity.
Does the wholesale cost make up the totality of the bill? No?
Then changes in those other costs, the not wholesale costs, would justify price changes, would they not?
Indeed, our favourite Baumol’s Cost Disease would tell us that we would actually expect those other costs to rise faster than wholesale costs. For those other costs are services (the billing, distribution, all that malarkey) rather than the manufacturing that is the actual production costs. And we all know that we expect the price of services to rise against the prices of manufactures over time.
Cameron obviously didn’t spend much time on the E in his degree. Indeed, we’d probably be better served if he’d spent the entire three years taking E.