SSE boss attacks 'scaremongering' over energy competition probe

"The choice facing energy companies is simple: attempt to carry on regardless without the trust of customers or stand up and be counted."

Mr Phillips-Davies said that those who are worried about the potential two-year duration of the probe would might want a "limited investigation, with a narrow scope and a tight focus".

Ofgem last week raised a series of issues with the profits made by suppliers, their market shares and the prices they charge, as well as low customer switching rates.

But Mr Phillips-Davies argued the scope of the inquiry should not only cover these issues but should also be extended into the wider energy sector.

"I urge the CMA to go deeper into the production of energy," he said. "This investigation needs to look at the bigger picture in the extremely complex and interconnected business of producing and supplying energy if it is to have any chance of establishing confidence in the market among consumers.

"What about interconnectors, gas storage, the role of switching sites, smart metering and perhaps the biggest issue of all, in terms of affordability, the cost of investment decisions?

"Everything not already economically price-regulated should be examined. A meaningful inquiry cannot dodge these issues because they are difficult. If the investigation is to "clear the air" then these big issues must also be in scope."

A spokesman for Centrica said: "Sam was not scaremongering. He was raising genuine concerns about the reserve margin in power generation and the need for investment in new capacity, which have been echoed by respected commentators."

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