Prospect represents 22,000 professionals working in the energy industry. The union’s deputy general secretary Garry Graham warned that although cost competitiveness is one part of the energy sector’s responsibility to consumers, it also has to ensure security and continuity of supply.

“Prospect has long advocated greater transparency and the need for the energy sector to build trust with its customers. But we need an honest political debate on how to meet our energy needs for the future,” said Graham.

“While much of the discussion has understandably been around cost and how to encourage customers to engage, one of the most important matters for householders and businesses is that they have reliable sources of energy.

“Energy margins are continuing to decline and without investor confidence there is a real danger that we will not have sufficient new capacity coming on line to keep the lights on.

“Investors need regulatory and political stability so they can invest in the generating capacity and energy infrastructure we need for the long term. Addressing this market failure is crucial to keeping energy bills affordable, the lights on and ensuring we have the appropriate energy mix for the future.

“Despite government announcements about phasing out coal electricity generation by 2025, we do not have a coherent plan on bridging the energy gap. At the same time, we are in the absurd situation of incentivising energy-intensive users to cease production or come offline in order to balance demand and supply.”

Graham also voiced concern about proposals covering transmission losses.

“We have already raised our concerns about closing major generating plant such as Longannet in Scotland. At a time when generating capacity is at a premium, we are concerned about regulatory changes which will make it more challenging to keep existing plant in operation and further reduce energy margins,” Graham concluded.

For more information, please contact:

Garry Graham:             [email protected]              07713 511703
Katherine Beirne:         [email protected]          020 7902 6625