A public policy that makes consumers with heat pumps, those who use electricity most efficiently, pay the highest price per kWh is bad public policy.
Such a policy will reduce the overall value we gain from using electricity. It will encourage the use of natural gas, an energy source we do not have, do not know how we will procure, and whose security of supply we cannot guarantee.
Such a policy cannot help reduce poverty, and it limits society’s ability to support its most vulnerable citizens. Good intentions, if they exist, cannot replace good public policy.
We do not want the block tariff to block development and become a blocker, do we?
We discussed this topic in Episode 8 of Nova Ekonomija’s podcast, Economics, Simply: