Price Cap Regulation

If it sounds British, and smells British...it’s probably British.

A price-cap regulation is a British price ceiling regulation for utility providers. Which means that utility companies in Britain have a capped price that they can charge people for utilities. Good for the Brits, since it means that water, electricity, and all those things that keep the world turning won’t be sold at a premium price in the future. Although...all bets are off if there’s a British apocalypse. They are an island. Hmm.

Anyway, Britain has tried to be fair about this towards utility companies. They set the cap based on inflation and expected efficiency savings. The price cap regulation proponents say, Brilliant...it’s good to keep all Britain on its feet via affordable utilities." Opponents say, "Bully...now utility companies are going to do a bad job at providing utilities, since they’re incentivized to cut costs more if they can’t raise prices." A brilliant bully indeed.