The Winchester & Chandler's Ford MP recently visited Utilita, run by Bill Bullen, and also challenged Labour of the effect on competition. He said: "The impact on smaller energy suppliers will be much harder felt and the level of competition in the market will drop. Is that now an Opposition policy intention?"
Steve was speaking following a letter to The Times, in which Mr Bullen pointed out the negative implications for future investment, the cost of capital and higher commodity prices should any temporary price freeze be implemented.
Pictured; Steve visits Utilita, based in Winnall.
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Bill Bullen's letter to The Times in full
Sir, Thanks to Ed Miliband price rises in the energy sector will now be bigger and earlier than they otherwise would have been (reports, Sept 25). Here are three reasons why:
1. Since he has now raised the spectre of regulatory risk, the cost of capital in the industry will rise, and that will have to be passed on to consumers. In the longer term, investment will be reduced and this will lead to tighter market conditions and hence higher commodity prices.
2. The only rational response from suppliers will be to raise prices by more than they otherwise would before the election to carry them through the proposed 20-month freeze. If a freeze is implemented, there will be a massive price rise as soon as it is over.
3. During the freeze the impact on smaller energy suppliers will be much harder felt and the level of competition in the market will drop.
Bill Bullen
Managing Director, Utilita