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UK Government plans cap on renewable energy revenues

2 pointsby open-source-uxover 2 years ago

1 comment

Comeviusover 2 years ago
A more complicated solution would be having different markets and prices for different sources of electricity. It&#x27;s not like these companies are price gouging, the renewables simply can&#x27;t cover the demand, so electricity cost a lot. But it doesn&#x27;t cost a lot for these companies to make, so they pocket the difference, incentivizing them to perpetuate similar conditions in the future, holding back supply. With a windfall tax the government takes that profit from you, removing the incentive. Problem solved.<p>This is yet another example of why the free market alone can&#x27;t function without intervention by the government.