UK Energy Firms Push Back on Government Intervention in Sector

(Bloomberg) -- The heads of Britain’s largest power and gas companies called on the government to rethink planned legislation that gives it the power to override the country’s energy regulator.

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Companies including Centrica Plc, Uniper SE and EDF Energy Ltd. raised concerns that the Energy Prices Bill, primarily designed to alleviate household bills this winter, expands the powers of the government to set the price cap on household energy bills, modify energy industry licenses and “give directions” in market regulation.

“We were alarmed to see clauses in the Bill that unexpectedly propose extensive new powers for Ministers in relation to the regulation of the sector,” according to the letter to Business Secretary Jacob Rees-Mogg signed by senior executives of 13 companies and co-ordinated by trade association Energy UK. “The operational activities of the regulator and the decisions it makes need to be carried out independently, expertly and objectively.”

The Energy Prices Bill is currently at committee stage in the House of Lords. Some UK energy companies are already facing a revenue cap that will essentially see windfall revenues from low-carbon generation taxed to help fund the government’s programs to help homes and businesses pay their rising costs.

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