Hutton: ‘era of cheap energy is over’

Cabinet Minister John Hutton has said that "the era of cheap energy is over". The Business Secretary told the Daily Telegraph that households would struggle to pay their heating bills this winter, but effectively ruled out imposing a windfall tax on energy firms because it would only lead to higher prices.

Seventy Labour MPs have signed a petition calling for a one-off tax on excessive profits made by energy firms, with public opinion polls also backing the suggestion, but the Treasury fears any such tax would lead to the firms passing on the costs to their customers.

Mr Hutton said: "The era of cheap energy is over. The question is how are we going to adjust to that and what sort of help can we provide to those who are going to struggle the most

"There is genuine concern about the difficulties that people will face paying their heating bills over the coming winter and we are looking at extra support. What we shouldn't do is create a climate that makes it harder to attract new investment... And we shouldn't do anything that has the effect of putting up bills further."