The Australian Federal Government is concerned that too high energy prices negatively affect both households’ wellbeing and business stability.

1.. The Australian Federal Government is concerned that too high energy prices negatively affect both households’ wellbeing and business stability. One of the measures under consideration is the introduction of a base retail price for energy. Using appropriate theories and diagrams, and based on your research, discuss the possible impact of this policy on:

 Energy generators;

Energy retailers;

Small businesses; and

Households

2. Consider any country where energy price is not regulated. Using appropriate theories and diagrams, and based on your research, discuss the possible impact of the introduction of price regulation on:

Energy generators;

Energy retailers;

Small businesses; and

Households