Partner Article

International Power sale ‘good thing’ for UK consumer

A LEADING ENERGY consultancy firm has said Gaz de France’s decision to purchase International Power is good for the consumer, despite the company falling into foreign hands.

That’s according to M&C Energy Group, who said the acquisition may actually strengthen the combined company’s ability to compete in the UK market.

David Hunter, energy analyst from M&C Energy Group, said: “While the sale of International Power represents further consolidation of power station ownership in the UK, the good news is that it has not fallen into the hands of one of the ‘big 6’ suppliers that currently have a stranglehold of the UK energy market.

“Currently they are marginal players in the business market and not involved in domestic. It would seem they have their sights on the UK’s lucrative big business and consumer marketplace and if so this could increase competition.”

M&C Energy Group, which warned that energy pricing for homes could well increase in the coming months, believes that more competition is needed if consumers are to see price reductions.

Mr Hunter added: “Despite some of the energy providers announcing record financial results, supplier margins have fallen from recent high levels and therefore price increases could well be on the way.

“This will be exacerbated by reports that France could see a power shortfall by as soon as 2013 putting greater pressure on the UK’s dwindling supply.” M&C Energy Group has now renewed calls for the government to stop talking and take action.

The government is now re-consulting on the UK’s energy policy with an announcement on the way forward due in the autumn.

The ratification of nuclear policy is not expected until April 2011.

This was posted in Bdaily's Members' News section by Ruth Mitchell .