I think it was the genius at Scottish Power that came up with it...the Klarna Fund It also involves the government giving the suppliers a wedge of taxpayers money I believe - to tide them over the period they're selling at a reduced margin/loss. As the young lady once almost said 'He would suggest that wouldn't he?'.Mr. Dazzle wrote: ↑Fri Aug 26, 2022 7:13 pm I see the idea of an Energy Deficit Fund is being floated. Basically the price cap would be fixed where it is now and instead everyone collectively racks up debt via a common fund. Said fund is then paid off by keeping prices higher for a decade or two.
Does rather assume wholesale prices will come down one day, so that the current cap is "in profit".
However if bills really do hit >£500pcm there would be millions of people who genuinely can't afford it. At that point it doesn't matter what cap you set, people don't have the money so it's moot.
It's Olympic standard 'Kicking the Can Down the Road'.