The Government’s cap on energy prices, introduced to protect the most vulnerable customers, has led power firms to hike more prices than ever before as they treat it as a target not a limit.
Dr Maria Ioannidou, of Queen Mary University of London, who co-authored a paper on the energy price caps, said: “Does [the price cap] work? The short answer is no it doesn’t. It represents a quick fix. It’s very difficult to get the level of the cap right and, even if you do, what tends to happen is it pushes prices up.”
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