The new British Prime Minister Truss wants to cap electricity prices for private households. However, the move is likely to cause widespread blackouts in the UK because supply is not keeping up with demand, economists warn.
The high energy prices are not only causing problems in Germany and Austria, people in the United Kingdom are also confronted with electricity bills that can be regarded as threatening their very existence. Similar to the completely amateurish actionism of an economics minister Robert Habeck sThe new British Prime Minister, Liz Truss, also seems to want to implement an ill-considered populist measure that ultimately does more harm than good. Because with a taxpayer-funded price cap for private households to £2,500 a year for the electricity bill, it could provoke extensive “blackouts”.
At least that’s what the economists at the Institute for Fiscal Studies (IFS) say, who warn of a shortage of electricity as a result of this measure. “Households, businesses and governments must reduce their energy consumption”to correct the UK energy market or supplies would have to be rationed, the IFS said, according to the specialist portal Oilprice.com. “The less UK households reduce their energy needs, the greater the demands of others…there is simply not enough energy for everyone, which would require rationing or increase the risk of blackouts.”
It is decided by those who understand the least
Due to the lack of understanding of how the real economy works, the professional politicians and bureaucrats are obviously causing more and more distortions and “making things worse”. In the case of Great Britain, this means that the supply of electricity (or at reasonable prices) that meets the country’s needs cannot be guaranteed. Without the incentive to save electricity, this will inevitably lead to more frequent, large-scale power failures because current production is no longer sufficient. Again, this is simply a consequence of sanctions against Russia, which was also a major energy supplier to the UK.
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