Full Version: NEC Statement - Domestic energy cap
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The Liberal Party notes the recent debate on the imposition of a price cap in the domestic energy market to control prices.
The imposition of such controls risks energy companies prematurely increasing prices in anticipation of controls being enforced, and well as reducing long-term investment to maintain profits margins.
The UK energy market lacks both an effective regulator willing to act to force energy companies to promptly pass on falls in whole sale energy prices, as well as encouragement for better price competition.
Many options to introduce competition to the markets exist, but the current regime offers little chance for local communities to take a stake in the market.
For instance in Germany energy cooperatives are a major player in renewable energy, where almost 50% of renewable power capacity is domestically owned.
The Liberal Party sees merit in such an approach as it both empowers local communities and reduces our long-term dependency on fossil fuels.