Scottish Power News Update: Scottish Power Hit Out at Ed Miliband
Scottish Power news update: the energy company has spoken out and warned that the 20 month price freeze promised by Ed Miliband could threaten future supplies.
Labour leader Ed Miliband has made a promise to the population of the UK that he will freeze utility bills for 20 months but Scottish Power have spoken out and suggested that this promise will have serious ramifications in the future. This promise will only be kept if Mr Miliband were to be voted into power in the 2015 elections.
The pressure that the public is feeling in relation to paying the bills and heating their homes is growing all the time and this promise is designed to help Mr Miliband achieve his goal of election. That is all very well but Scottish Power’s argument is that the freeze is a quick-fix and it could have serious repercussions in the future as the utility supply company’s inclination to invest their money in future resources could be dampened.
The Labour leader wrote a letter to the “big six” energy supply companies and expressed his displeasure at the way the public has been treated by the companies. He insisted that there must be reforms if the taxpayer-funded guarantees are to be sustained.
Scottish Power News Update
Accusations from Mr Miliband includes firms “overcharging” customers and reinforcement of the sentiment that the energy firms are essentially taking advantage of the fact that customers need to heat their homes and with the high prices affecting everyone, the companies can charge more.
Scottish Power are not the only company who responded with the sentiment that things could become stretched in the future if there were to be a price freeze. Business plans are drawn up years in advance and having a regulated charging policy allows the company to make these plans – changing them drastically will have investment consequences.
It is likely that with price increases predicted over the coming years anyway due to the decarbonisation and general modernisation of energy systems, Scottish Power and probably many more energy companies are looking to invest a large amount of money in the development. This will mean an investment of, for Scottish Power certainly, £15bn which should produce up to 4500 new jobs.
This sort of development is vital for the progress of the energy systems but pay freezes can leave companies behind on profits and put serious spanners in the works of progress. Investors in the companies will also begin to question their moves – will they get a good return on their investment?
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