The expected unexpected impact
According to friends of Business Juice, Cornwall Energy, Ed Miliband’s ‘off the wall’ and ill thought through commitment to freeze energy prices after the next election has resulted in the fully expected unintended consequences of market meddling.
The independent energy consultancy, has written to Caroline Flint, the Shadow Secretary of State for Energy and Climate Change to express concern that the mere threat of Labour’s heavily criticised iron fist of market manipulation is already having negative consequences.
Nigel Cornwall, Managing Director of the independent energy consultancy has detailed in his letter that a number of prospective new entrants “are now reconsidering their position as a result of the proposed price freeze”.
Cornwall added:
“Smaller players without direct ownership of flexible generation are facing greater risk regarding how they can price into the market.”
Director of Cornwall Energy Robert Buckley, and one of our expert energy forecaster panel confirmed to industry magazine ‘Utility Week’ that more than one company from differing backgrounds have been dissuaded from entering the market due to Labour’s plans.
These worrying claims were backed up by price comparison website uSwitch, whose Director of Consumer Policy Ann Robinson echoed that two foreign companies
“were thinking of entering the market but they changed their minds on the back of what Ed Miliband had to say”
Worrying times indeed, and whilst uSwitch.com clearly have a vested interest in not seeing centralised pricing, the independence of an organisation like Cornwall Energy speaking out on this policy and its inevitable consequences resonates louder than any argument so far put forward to challenge Miliband’s folly.