The UK government is talking to the energy industry about short-term ways to mitigate the increase in gas prices. The long-term solutions are more energy efficient. They are reducing methane gas in homes, and diversifying the power sector so people are less reliant on geopolitics and more reliant on lovely offshore wind, nuclear and hydropower.
The policy should shift from broad-based support such as price controls to targeted relief such as transfers to lower-income households who suffer the most from higher energy bills.
So far, Europe’s policymakers have responded to the energy cost surge mainly with broad-based, price-suppressing measures, including subsidies, tax cuts and price controls. The government providing direct financial support to some households could reduce the average annual bill for poor people.