Energy investors haven’t had clear policy frameworks in the last 15 years.
That’s the view of Ronan O’Regan, Director of Power and Utilities at PwC, who insisted a clear and stable policy framework is needed in the current energy market.
Speaking to ELN at the Energy Live Consultancy Conference he said: “In terms of uncertainty on policy, I think the reality of the way our energy market is going is that we’re in a world in which governments are going to intervene more and more in the market.
“Despite the fact that the Secretary of State said in her reset speech that she’s looking for less intervention, the reality is we’re going to continue to have a lot of intervention and that is a challenge for both customers but particularly for businesses to navigate through that change.”
Asked about his reaction to the CMA report published last week, he believes the energy market is not the same as in 2013.
Mr O’Regan added: “If you go back to why we had a CMA investigation it was because prices were rising quite rapidly back in 2013 so it was a bit of a knee jerk reaction ‘let’s investigate the market and find out what is really happening’.
“Here we are 20 months later we know quite a lot more about the market, ironically wholesale prices have collapsed, yet surprisingly very little of that has got passed through to end customers so I think we know a lot more about the market.
“Is the market functioning really well the headline message is customers are getting overcharged by £1.7 billion, maybe we’re in a wait and see scenario?”