E.ON – "Everything to stop us” raising prices ahead of freeze

There “is everything to stop [E.ON]” raising prices in anticipation of a freeze, according to the supplier’s Director of Strategy and Regulation, Sara Vaughan. After Ed Miliband announced Labour would […]

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There “is everything to stop [E.ON]” raising prices in anticipation of a freeze, according to the supplier’s Director of Strategy and Regulation, Sara Vaughan.

After Ed Miliband announced Labour would freeze energy bills for 20 months if he came to power in 2015, it was suggested some suppliers might raise their bills ahead of a possible price cap to limit damage to their bottom lines.

Although she stopped short of saying anything definitive, speaking at the Westminster Energy, Environment & Transport Forum, Mrs Vaughan seemed to suggest the firm was against making such a move: “There is everything to stop us doing that as raising prices is always the last resort.

“The last thing we would want to do is have some sort of stealth price increase.”

However, she made her displeasure with the price freeze promise clear: “It’s changed the whole nature of the market and introduced huge risk.”

She said the country risked sliding down a slippery slope away from a market based energy sector: “[If] you’re prepared to cap retail prices, then is your next intervention going to be that you cap wholesale prices or you’re going to intervene somewhere else?”

Ed Miliband jumped on SSE’s price increase announcement earlier today as yet more evidence of the need for a freeze.