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An energy price cap will lead to “less competition” for customers, according to ScottishPower, one of the “big six” utility companies.

Large utility companies have been voicing their objection over the last 24 hours to a cap on expensive standard variable tariffs – the most common rate – after the Conservative Party made clear that energy price controls would be one of the key consumer pledges in its forthcoming manifesto.

The market had been expecting a clampdown on standard rates after five of the “big six” energy companies announced price hikes this year, sparking outrage from MPs and consumer groups.

Keith Anderson, chief corporate officer of ScottishPower, told BBC Radio 4′s Today programme on Monday that price controls “tend to lead to less competition”.

His comments echo similar objections voiced by Iain Conn, the chief executive of British Gas-owner Centrica, who said on Sunday that price regulation “will result in reduced competition and choice, stifle innovation and potentially impact customer service”.

Copyright The Financial Times Limited 2017. All rights reserved.
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