You are here

Price freeze 'may drive out small suppliers'

Labour’s plans for a “freeze” on energy prices could put fast-growing new energy suppliers out of business, according to Professor Michael Pollitt.  
Speaking at a Cambridge Judge Business School meeting in London, Pollitt characterised the policy, saying it  “appears to be a commitment to a binding price freeze residential and non-residential bills for at least all non-half hourly metered customers”.  
He said there could be several outcomes of a freeze. If it was successful, “Capping prices in competitive markets leads to shortages,” he said.

To continue reading this article please login if you already have an account or subscribe.