by Tyler_JC » Thu 31 Jul 2008, 10:38:55
$this->bbcode_second_pass_quote('Starvid', 'Y')ou should have done like the French and had your energy companies run as state monopolies which by law cannot raise energy prices at a higher pace than inflation. Obviously these state run behemoths are extremely efficient and profitable as they are run by highly skilled technocrats with a penchant for nuclear power. Indeed, French monopolies will run the new British nuclear power programme!
So what happens when the real cost of energy (yes, energy has a real cost) rises faster than inflation?
Does the government just subsidize the electricity and encourage wasteful excess?
Consumers still have to pay for it, in the form of higher taxes.
Governments should never mask price signals. It just encourages inefficient behavior. Look at Iraq. We give them basically free gasoline and they turn around and sell it for a profit to their neighbors.
Hopefully these higher gas bills will encourage British consumers to figure out a way to reduce their energy consumption and switch to alternatives to gas.
Moving the responsibility from consumers to goverments (aka, taxpayers) is bad public policy.