Energy supplier Good Energy is concerned about the market skewing towards the ‘Big Six’ at the expense of smaller suppliers.
This follows the Government’s “persistence” on a new system that is claimed to offer a stable market to attract investors.
Juliet Davenport, CEO and founder of Good Energy said the government is “playing with fire” for proposing to add the Contracts for Difference (CfD) system to the initially proposed Feed-in Tariff (FiT) for power suppliers.
She said: “They will restrict competition in the market, rather than attracting the new investment the industry needs and the result is that consumers will be the losers in the long run because they will end up having to pay higher prices.”
However, Colin Prestwich, Head of Regulation for SmartestEnergy said although the FiT CfD proposal was not their preferred option, he believes it does provide “more certainty” for investors.
He added: “The months ahead will now be crucial as the detail on FiT CfDs in areas such as pricing is developed. The renewables industry and independent generators must actively engage in the debate to help ensure the final framework provides the right environment to stimulate the investment the UK needs to keep the lights on, prices down and meet climate change targets.”