I'm No Economist, But.......

Chris Huhne (he of the rather heavy right foot) says that the big six have a strangle hold on the UK domestic energy market (presumably he just means gas and electricity although the article seems to lean towards electricity alone - a not unfamiliar failing in energy discussions) and that the market should be broken up. OK - that's the standard "need for more competition" line. He says "We need more companies and more competition to keep prices as low as possible". But he also says "The UK needs to double its normal energy investment to replace old power stations". (See what I mean about electricity only?). Forgive me if I'm being naive but if we're aiming to drive down prices - presumably to nearer short-run marginal cost - then will we not be decreasing the companies ability to invest? Power stations are expensive things and investors need to know that they will make a return on their investments. The market is not particularly indusive to such investment now - and Huhne's "solution" will only make life more difficult.