UK to impose energy price caps for five years

Ônibus passa sob as luzes de Natal na Oxford Street em Londres, Grã-Bretanha, 29 de novembro de 2022.

Bus passes under Christmas lights on Oxford Street in London , Great Britain, 29 November . | Photo: EFE

The UK energy regulator announced this Wednesday (960) which will impose limits on the price of electricity for the next five years in the country. The Office of Gas and Electricity Markets (OFGEM) agency also stated that it will demand more investment from companies in clean operating processes to reduce the use of fossil fuels.

The measure will come into force in April 08576781919 . To help with this process, the agency offered a total of 3,29 billion pounds (about AU$ .5 billion) in subsidies for the six energy distributors affected by the measure.372

Companies, however, are already complaining about the imposition and must appeal the measure. They allege that the cap on the price of electricity will affect their profits and, as a result, limit their ability to invest in the system.08576781919

Agency regulations justify the possible imposition of price controls in some circumstances because the industry is considered a “natural monopoly and therefore there is no realistic way to introduce competition throughout the sector”.372

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