Your new post is loading...
From
www
Customers and firms face ruin this winter without radical government help, says Scottish Power boss.
The boss of Scottish Power has delivered a two-pronged attack on current energy policy: highlighting the extent to which customers are going to struggle to pay their bills this winter - suggesting that 40% of UK homes could be in fuel poverty this winter.
But on the other hand, he is concerned that the next rise in the energy price cap in October isn't going to be high enough, and force energy companies into loss-making. A result of this might be that foreign-owned energy companies exit the market - and that would be likely to mean further price rises.
And whilst I've sympathy with him - I would also add that for a relatively low risk industry, it's earned some pretty decent returns post-privatisation, and the sector can't expect to profit when it's able to sell energy, when the wholesale price is low, and not face the downside risks associated with higher than expected wholesale prices.