Sir Simon’s latest wheeze:
Like the banks during the 2008 crisis, energy companies are oligopolies that cannot expect to escape public regulation, least of all when blessed with a political bonanza. The answer must be to slash the price cap and demand the companies spend their profits directly on cutting bills. The wimps of Ofgem, the industry regulator, must become tigers. They know that these companies – and their executives – are now wealthy. They know investment is not at issue: they are distributing massive profits and buying back shares. Unless the west goes collectively mad, energy supplies, and profits with them, will return to normal.
The folks making the money are the initial energy producers. Wind turbines, solar farms, oil and gas companies. The folks supplying the retail electricity are all going bust because of the price cap.
There’s a certain confusion to Sir Simon’s suggestion, no?