Cost of living crisis and fuel.

The UK government strategy for keeping the lights on has been competition . A number of small companies out bidding the big six for power and selling electricity cheaper. The Government encouraged shopping around, not building new power generation systems. The market will provide, not of concern to the Tax payer.




As the cost of fuel increased so did the failure of the small power companies. To safeguard consumers, Ofgen the government regulator had a capping system. No power company could charge above that rate. The rate was fixed yearly.




As companies went bust the price cap was thought to be the problem. It was decided that more frequent reviews were necessary, not to protect the consumer but safeguard profits of remaining companies.




In April the cap was raised by £1,000 plunging families and the economy into crisis.

Rishi Sunak the chancellor at the time devised a direct support system to help out. The maximum paid to those on universal credit. This replaced the £20 a week (£1,400 a year) the government took off them.




Now the cap is to double in cost. We have a new Prime Minister , What can she do?




The bosses of the big six call on the government. These bosses with eye watering pay and even more bonuses live an extravagant life on company expenses. They want protection.




If nothing is done the public will default on payment, all the companies will go bust, the lights will go out, and the streets will erupt in riot and violence. This is clearly not acceptable.




She could nationalise the power generation companies. This will save millions on bosses pay. Nationalise power companies are common in Europe. Tax payers money is used for the common good.




She could double the support to low income families, as done previously. When prices are high so is the support. As the fuel is more plentiful and prices fall so the hand outs can be reduced.




What she intends to do is support the power companies with loan guarantees, to the tune of £100bn.

The money will be clawed back by the power companies from increasing energy costs, above inflation for over 20 years. The tax payer takes the hit on the loan. The customer takes the hit on the energy costs, thus pays twice for the power. Prices will never go down even if fuel does. There is no incentive to build a green power generation system.




Some one will get a directorship when they leave office.




If this happened in any other country this government would call it corruption.

This government calls it Conservative values