Energy UK comments on proposed intervention in retail energy market
Following media coverage today of a proposed intervention in the retail energy market Energy UK have made a statement.
Lawrence Slade, chief executive of Energy UK said:
"Only last year, the Government’s own competition regulator decided against introducing a wider price cap, instead opting for a cap for prepayment customers which came into force this month.
"Intervening further would undermine so many of the positive changes that we are seeing in the retail market. It would be giving up on competition, and at a time when we need engaged consumers more than ever.
"Intervention on this scale will additionally create huge uncertainty around Government intentions, potentially putting at risk the billions in investment and jobs needed to renew our energy system.
"Switching levels and consumer engagement are up but, as in any competitive market, those who engage stand to benefit most. But the answer is not to distort the market as a whole and risk households who do shop around suddenly finding there are no more cheap deals for them.
"The answer must be to see through the market reforms, allowing competition to drive innovation and benefits for consumers while ensuring that there is targeted support for those most in need. "