UK Should Consider Cap on Energy Profits, Adviser Says

Article content(Bloomberg) — The UK should consider temporarily capping the profits of energy companies to protect consumers as prices spike in the wake of the Iran conflict, a top government adviser said on Sunday.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentRichard Walker, the chairman of supermarket chain Iceland Foods Ltd who was recently appointed as the government’s cost of living czar, said a short-term cap could prevent “profiteering” from the crisis, which has driven up energy prices after Iran blocked the Strait of Hormuz, a crucial shipping route for Europe’s oil and gas. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“I have asked the government to consider a temporary profit cap, if required, to stop producers and retailers exploiting the crisis to make windfall profits at the expense of consumers,” Walker wrote in the Sunday Times.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“This cannot be another moment when ordinary households take the first and hardest hit, and profiteers seize the opportunity for prices to ratchet up quickly and come down slowly,” he said.Article contentThe hostilities have sent fuel prices soaring, with gas prices at UK pumps reaching the highest levels since August 2024 earlier this week. The price cap on domestic energy is also predicted to rise by 20% in July. The government has already introduced a more-than £50 million ($66.7 million) fund for low-income households reliant on heating oil. Article contentOn Sunday, Chris O’Shea, the chief executive of Centrica Plc — one of the UK’s largest energy suppliers — said oil and gas production is already heavily taxed and called for more UK-based gas storage and production, as well as more renewable energy and batteries. “These activities will bring prices down,” he said.Article contentMeanwhile, UK Housing Secretary Steve Reed told Sky News that officials were monitoring the impact of the crisis on energy supplies and costs “hour by hour” and could step in with further measures to support households if necessary. He also said there is currently “no need to ration fuel.”Article content(Updates with comment from Housing Secretary in seventh paragraph. An earlier version corrected the Centrica executive’s title.)Article contentTrending Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Trump Planned for Big Oil's Global Dominance.

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Then He Went to War With Iran PMN Business This TSX space and defence stock is a bright spot in an otherwise struggling index Investor Public-private partnership launches $1.3-billion fund to purchase unsold GTA condos Real Estate