Energy boss fumes at plan to cap prices

THE boss of energy giant ScottishPower has become the latest to hit out at UK Government plans for a price cap on gas and electricity bills, warning it could harm competition.

Chief executive Keith Anderson said the Government should instead make the “bold move” to scrap standard variable tariffs (SVTs) and only use price caps as punishment for firms that fail to move customers on to better-value fixed deals.

His comments follow warnings on Tuesday from Iain Conn, chief executive of British Gas parent Centrica, who said the proposed price cap could turn his group into a loss-making business.

The energy industry was left reeling after Work and Pensions Secretary Damian Green confirmed over the weekend that the Government will cap energy prices if it wins the General Election in June.

Shares in listed energy groups Centrica and SSE tumbled on Monday after the pledge.

Unveiling ScottishPower’s firstquarter figures on Tuesday, Mr Anderson said: “A potential price cap could harm competition, so the bold move by Government would be to set a deadline to abolish SVTs and get every customer on a fixed-price deal instead.”

He added: “The Government could impose a target that two out of three customers should be on a deal by the end of 2018 and all customers on a deal by the end of 2019, with SVT abolished once and for all.

“Any company that fails to meet these targets should have a price cap not only imposed but retained until all their customers are on deals.”

He said customers need to get used to switching regularly to ensure they are on the best tariffs.