Daft init.
Also the Government through Offgen allow the price cap to rise so we pay more and the energy companies make more profit (especially when the wind blows hard). Then the government takes a cut of the profits and gives it back to us.
Would have been easier to keep the price cap low.
And why can't a price cap be introduced for petrol and diesel,?
The cap is not in place to guard against high energy source costs, it’s to guard against profiteering through raising the standard tariff for existing customers who don’t look for a deal each time they renew their contract.
Petrol and diesel don’t need a cap as you make a choice about where you fill up (and therefore how much you pay) each time you go to a fuel station.
The recent raising of the cap is not to allow for more profit, it’s to prevent the amount a customer pays from being less than the actual cost of the energy being consumed. When consumers pay less than the cost of energy, energy retailers go out of business.
The as I understand it, the windfall tax is not targeted at energy retailers (like Octopus, or Scottish Power), but at energy suppliers like BP, and Shell. Their profit has increased because of the sudden increase in market prices of Oil and Gas. They mine the raw material at a more or less fixed cost but are selling at a much higher price because of the global supply issue. That creates a windfall profit.
I am interested to know who profits more when the wind blows hard?