The outgoing chairman of Centrica has warned that the “Punch and Judy” debate about energy prices in the UK is putting off investors.
Up to £11billion had been wiped off the value of energy stocks in the past two months, and writing in a Sunday newspaper, Sir Roger Carr has turned on critics. He has warned that any attempt to enforce price caps was illogical and would be a threat to the “financial fabric” of the energy companies.
“Political rhetoric has inflamed consumer passion, fed suspicion, discouraged investment and damaged investor confidence,” he said: “The reputation of the industry has been battered and morale bruised. All energy companies have been accused of profiteering, collaborating with competitors, manipulating costs to disguise profits, and caring little for their customers. These charges are false.”
Liberum Capital said that Labour’s proposals to enforce a price freeze on energy companies had “destroyed” between £7billion and £11billion of shareholder value. “No energy company wants to increase bills – it enrages customers and damages relationships,” Sir Roger said.