Wednesday 25 September 2013

Pricing Energy

It's been proposed that energy prices be frozen for a while.

That strikes me as perverse. We are trying to reduce consumption of energy to slow down global warming, so higher prices should be helpful.

People sometimes worry about the profits energy companies make. I see little to worry about. Retained profits will be invested in improving supply, and distributed profits will mostly go to pension funds, and help maintain aged folk who might otherwise need state support.



1 comment :

Sasha said...

Of course it would be a very good thing to reduce consumption of energy, but - in the case of those who are poorest - rising energy prices will mean that people will not be able to afford to heat their homes or cook their food.

It may be that you and I can afford to pay high prices for energy, but there are many people less fortunate.

I remain to be convinced that energy companies are using their vast profits to improve infrastructure provision.