Energy crisis: why government support for businesses could harm the economy in the long run

By Alan Shipman, Senior Lecturer in Economics, The Open University

The UK government hopes to protect businesses and public sector organisations against spiralling energy costs with a package that parallels the price cap and support payments recently promised to households. But these significant interventions come with a large and imprecise price tag that raise serious doubts about the government’s future finances.

By curbing retail electricity and gas prices, the new strategy aims to make energy companies share the cost…

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