Prime Minister David Cameron’s proposal to force energy suppliers to offer their lowest tariffs to customers “won’t make any difference” in the long term.
An energy professor claims the “underlying issues” in the energy industry will ensure prices will continue to rise in the future and the Prime Minister’s move won’t keep energy prices down for long.
David Elmes (pictured), Head of Warwick Business School’s Global Energy group and an industry expert said: “This idea seems a simple solution to energy pricing and could well produce a short-term boost for consumers but in the long term it won’t make any difference. The Government is in a difficult position of trying to force through reforms, renewable energy policies and so lumping extra costs on the energy firms as well as trying to get the best deal for consumers.
“Energy firms are having to invest in research and new technology, while oil and gas supply is falling. The UK is now an importer so it has to find new energy sources and costs will continue to rise. Plus we don’t want to be too hard on the companies or they will simply go elsewhere to a better market.”
The comment comes after five of the big energy suppliers announced gas and electricity price rises this winter.