The House of Commons Business and Enterprise Select Committee must not use energy firms as a scape goat to deflect from government impotence and incompetence, according to classical liberal think tank, Progressive Vision.

Shane Frith, director of Progressive Vision, said;

“We must be wary of politicians seeking to shift blame onto energy companies in an attempt to appear to be addressing the ‘problem’ of high energy prices.  In the short term, politicians can do little to alleviate these prices, but they risk exacerbating the issue in the long term by discouraging much needed investment.

“The energy sector requires large amounts of long term investment.  This requires the industry to have confidence in the behaviour of this government and any future government.  Any attempt to impose regulation or windfall taxes will destroy this confidence and delay vital infrastructural investment. 

“Energy prices are high for a variety of reasons, some such as the welcome economic growth in India and China are beyond even Gordon Brown’s control.  Others such as wasteful subsidies for biofuels are and should be addressed by the UK government and the EU.  Attempts to shift the blame are both dishonest and damaging to Britain’s national interest.”

ENDS