Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, responded to reports that taxpayers face a multibillion pound bill to bail out energy companies 

“The poorest households should be protected from soaring bills, but the taxpayer should not be expected to write a blank cheque to bail out energy companies. Market forces need to be allowed to work and if this means that relative prices have to change to balance supply and demand, then so be it.

“There may be a case for government loans to fundamentally sound businesses which are facing temporary problems as a result of global shortages. However, these companies should still be expected to borrow on commercial terms. Otherwise, there is a risk that the industry fails to adapt and that it remains vulnerable to further shocks.”

Contact: Annabel Denham, Director of Communications, 07540 770 774

IEA spokespeople are available for interview and further comment.