It does appear to me that very few people know what to do - all Parties and most commentators. At root we have to recognise that we are all in this together (where have we heard that before). Dancing around VAT reductions and temporary relaxation of "green levies" is insufficient with the prospect of price increases that could go to +300%! This could mean the least well off paying up to a quarter of their income in energy bills!
In regard to the current inflation there is an overwhelming argument to increase welfare benefits (Universal Credit) such that recipients have sufficient funds to keep reasonably fed and warm in Winter. But this has to be part of an integrated plan. Energy companies should be offered a debt for equity deal provided they accept the price cap, have adequate collateral (independently audited), freeze Board or equivalent level salaries and Dividends. The government backed loan facilitating the debt for equity could be spread over many years - perhaps 20 which should help in the transition to non-fossil fuels. Additionally this should obviate the demand for an energy bill payment strike with the potential for societal breakdown.
What would be the arguments against this plan. It is true that it would raise the national debt but I say that is better than people becoming ill due to lack of warmth. Of course in a debt for equity arrangement the country would have a long term investment in those companies but long repayment dates would help both the companies and the country in gradually reducing debt. This would have to be managed much better than the shambles of Covid related purchases. Companies might object that their freedom to operate would be curtailed - this is true and with the failed regulation (particularly in relation to some companies which were no more than asset lite traders) it would not be before time for what is an essential utility!
I would suggest this is a far better option than tinkering around the edges.
