How does a price cap on gas and coal lower your power bill, in theory?

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How does a price cap on gas and coal lower your power bill, in theory?
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The federal government has announced a price cap on gas and coal to help ease the cost of energy, but how will this help to lower your power bill?

Help keep family & friends informed by sharing this articleThe federal government has announced a price cap on gas and coal to help ease the cost of energy.

"So in principle, decreasing the cost of any one elements of that cost stack will decrease the cost to the end customer … at least, that's the hope," he said.

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