Prospect: Energy company loans would be a short term solution that does nothing to fix broken market

Sue Ferns, Senior Deputy General Secretary of Prospect, responding to reports that the government is to give loans to energy companies to help lower prices, said:

“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.”