Date of Award

5-2024

Document Type

Thesis

Degree Name

Master of Science in Information Systems and Technology

Department

Information and Decision Sciences

First Reader/Committee Chair

Butler, William

Abstract

29 million households in the United Kingdom (UK) use Energy Price Cap and the UK government spend about 43 billion dollars a year which is 1.7 percent of the GDP in subsidizing the energy price cap subsidies to the households and businesses. The energy prices in the UK have seen a significant rise in the past few years for distinct reasons. This culminating experience project explains the mechanism of the energy price cap used for the household energy supply in the UK and how it has been affected between the years 2022 to 2024. The research questions are: (Q1) How has the energy cap implemented in the UK impacted electricity prices, particularly in the context of natural gas prices? And (Q2) What are the economic implications of people spending on energy caps and subsidizing household energy bills?

The findings and conclusions from the Project are: (Q1) As market conditions are fluctuating the electricity prices were increasing when the natural gas prices were increasing. But the price cap helped the consumers pay significantly less compared to the actual price. (Q2) There was a negative implication on people spending even after subsidizing the household energy bills. The demand for electricity and natural gas has gone down and energy price cap was implemented improperly as high-income households were being benefited paying less percentage of their income into energy expenditure.

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