The Adam Smith Institute Responds To Chancellor’s Plans To Tackle The Energy Price Hike

Mitchell Palmer, economist of the Adam Smith Institute, said:

“It’s moments like this that highlight the cost of neglecting our own energy security. Britain has left itself exposed to global shocks by shutting down domestic supply without a credible replacement.

“Reeves is right to commit to diversifying the energy mix and removing barriers to nuclear; that’s a step in the right direction. But talk of cracking down on ‘profiteering’ risks misunderstanding how markets work. Price signals are essential in a shortage; undermining them will only make the problem worse.

“If Ministers want to protect households, then they need to unlock domestic energy production. They need to focus on drilling the North Sea oil and gas we do have, to build a system that is resilient, not reactive.”

-ENDS-

Notes to editors:

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