Inflation is the highest in decades and Russia’s natural gas exports to Europe have plummeted, prompting more and more governments to experiment with ways to control energy prices. The plans will test the economic wisdom that price controls distort markets and create supply shortages.
In the UK, the new government is planning to limit household energy costs and utility payments to the difference between the ceiling and market prices, and Germany is planning to cap electricity and gas costs. nature. The European Union has both approved plans to take the profits of some energy companies and redistribute them to consumers, and it is also working on creating a global price cap for natural gas. unit. The United States is leading an effort alongside its allies to cap the global price of Russian oil, while a United Nations agency last week urged policymakers to opt for price caps. and a rebate tax to combat inflation.
https://www.wsj.com/articles/as-europe-caps-energy-bills-the-merits-of-price-controls-get-another-look-11665278841 As Europe Caps Energy Bills, the Merits of Price Controls Get Another Look