Price Cap Regulation

Price cap regulation is a way governments control the prices that companies can charge for their services, particularly in industries like utilities or telecommunications. It sets a maximum price that the company can charge consumers. The idea is to prevent companies from raising prices too high while allowing them to earn a reasonable profit. The cap can be adjusted over time based on inflation or changes in costs, encouraging efficiency and investment while protecting consumers from excessive charges. Overall, it's a balance between ensuring fair prices and allowing companies to operate profitably.