Lending energy companies billions will do nothing to fix broken market

There are reports today that the government is to give energy companies £billions in loans to help them keep energy bills down – the cost of repaying these loans will be pushed onto future consumer energy bills.

The government is expected to formally announce measures to help consumers tomorrow (3 February) at the same time as Ofgem announces changes to the energy price cap.

Sue Ferns, Senior Deputy General Secretary of Prospect, responded:

“These proposals are a short-term political fix that won’t address the fundamental issues in our broken energy market which have caused this bills crisis.

“While something must be done to ease price pressure on households, there is a huge risk that these measures simply entrench higher bills for years to come, without addressing the core issues that have led to this situation.
“The energy market is fundamentally broken. The government is already intervening to the tune of billions of pounds and has effectively nationalised Bulb.

“It’s time to invest in new nuclear and renewables, take energy retail out of private hands and find a sustainable solution that works for consumers.”