First it was Miliband, then it was Major, and now Ed Davey has jumped on the populist band wagon. Is there something in the Westminster water that addles the political brain?
Granted, the utilities have done themselves no favours by failing to be completely transparent on costs and prices but politicians, ministers especially, must realise that a secure energy supply is predicated upon a delicate balance between public policy making and the deployment of private capital. Davey's flat-footed intervention caused a fall in utility share prices - particularly that of Centrica - and not surprisingly because all he has done is add further uncertainty to the climate in which these companies operate.
Now, the more uncertain any market is, the less are investors likely to pile in (or at the very least they'll be asking for higher rates of return). The country is in an energy bind and is in need of new and sustained investment. Davey's loose words are no way to encourage that investment.
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