Chapman urges universal price cap for essential household energy

Dr Alex Chapman argues that the government should guarantee every household affordable access to essential energy, rather than create a targeted social tariff for vulnerable people. He says means testing would add a complex benefits system to the privatised energy market and could unfairly divide households.

Chapman proposes that the Treasury fund a price cap on a basic block of gas and electricity, covering needs such as heating, lighting and refrigeration. He suggests allowing electrically heated homes to transfer their gas allowance, and says high energy use could eventually help fund the offer. He also points to Australia’s scheme of three hours of free daytime electricity as an example of how renewables might improve energy security.