Explainer: a ‘deficit tariff scheme’ would draw on a state-backed fund but could prove costly
• Industry unites behind plan for crisis fund to control soaring energy bills
The clamour for the government to intervene to help households with their energy bills grows louder by the day. The Treasury is examining options to alleviate the cost of living crisis, which include extending the existing energy bills support scheme established by the then chancellor, Rishi Sunak, in May. On Thursday, the energy industry united behind its own proposal for a “deficit tariff scheme” to freeze prices at current levels by plugging the gap between wholesale costs and what consumers pay. Here, we examine the merits of the scheme.
