Adil Ray asks energy chief about calls for 'public ownership'

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Mr Ray, speaking to Ofgem chief Jonathan Brearley, said energy companies coexist in a market to “encourage competition” so that “prices will be lower”, but added that that was “clearly not happening” in light of the exponential rises in energy bills and the price cap, which will shoot up to £3,549 in October. The GMB host said the rises were reason for at least considering the renationalisation of energy companies, to which Mr Brearley sidestepped the issue, saying it was “ultimately a big matter for political debate”. The Ofgem chief suggested, however, that deprivatizing the companies would not have the desired impact because we would “still have the issue of the price of energy going up extremely fast”.  

Mr Ray said: “The reason we have these energy companies is to encourage competition so therefore the prices will be lower. That is clearly not happening. 

“What would you say to those who make the argument that, even if it is just temporary, we need to start taking back ownership of these companies to benefit the majority of our population, and that is the best short-term measure?” 

Mr Brearley said: “Well, look, that is ultimately a big matter for political debate and many people from many parties have different views on that. 

“All I will say is that even if you change the ownership of a company, even if you change the way that it is run and administered, you still have the issue that the price of energy is going up extremely fast.

“This winter will be 15 times what we normally expect to pay for our energy and that is what is causing the price rises that we see here.

“Genuinely, there are no easy answers but there are some big decisions that, ultimately, ministers will need to make.” 

The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.

The four and a half million prepayment meter customers, who are often the most vulnerable and already in fuel poverty, will see an even more punishing increase, with their average annual bill set to go up to £3,608.

The matter of soaring energy bills has been a growing issue but has only made it to the forefront of political debate, with Liz Truss acknowledging in yesterday’s Norwich hustings that the crisis would be the defining problem for the next Prime Minister. 

Chancellor Nadhim Zahawi said the increase in the energy price cap would cause “stress and anxiety” for people but that the Government was working to develop more options to support households.

He said: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households and £300 for all pensioners. 

“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support.

“This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”

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The announcement comes in the middle of the Tory leadership race, with the identity of the next Prime Minister set to be decided in a matter of days.

With Mr Zahawi not expected to retain the chancellor role under the next administration, it will ultimately be up to the new leader whether to take the Treasury advice or seek a whole new set of options.

The proposals put forward by frontrunner Liz Truss and rival Rishi Sunak have both been criticised for failing to meet the scale of the challenge, with the Foreign Secretary promising an emergency budget to address the cost-of-living crisis if she enters Number 10.

Labour has been vocal in attacking the proposals put forward by both candidates as failing to meet the needs of the public.

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