Sunday March 22, 2026 10:57
| Updated:
Sunday March 22, 2026 10:58
Richard Walker has urged the government to consider imposing temporary curbs on energy company profits, and warned that households risk being hit hardest by price shocks linked to the Middle East conflict.
The Icelandic boss, recently appointed as Labor and cost of living advisor, said ministers should consider income curbs for manufacturers and retailers during a period of extreme volatility.
“I have asked the government to consider temporary profit curbs… to stop manufacturers and retailers exploiting this crisis to make windfall profits at the expense of consumers,” Walker wrote in The Sunday Times.
The proposal would go beyond the current windfall tax by directly limiting profits during periods of crisis, a move that would likely divide opinion among businesses and governments.
Walker said the intervention would be targeted and not permanent, adding: “As the chief executive of a retail company, I have no problem with profits… But I have a big problem with making profits, especially when families are under real pressure.”
His comments come as energy markets remain volatile following escalating tensions in the Middle East, which have pushed Brent crude prices above $100 a barrel in recent weeks.
Prices briefly soared as high as $119 before falling again, while the gas market also saw sharp changes following attacks on key infrastructure in the Gulf.
These disruptions could result in significant supply shocks, with millions of barrels per day temporarily halted, raising the risk of sustained inflation and slower growth.
Pressure increases on the government as bills increase
The government has summoned energy producers and petrol retailers to Downing Street, which Walker described as “inappropriate action”, and warned against “opportunistic fraud”.
The Competition and Markets Authority (CMA) is also present, and its ministers have shown a willingness to strengthen its authority if necessary.
Walker said regulatory pressure must remain constant to ensure companies do not take advantage of market volatility.
Calls for stricter interventions come as households face rising costs on a range of fronts.
Estimates from Cornwall Insight suggest the average annual energy bill could rise by more than £300, while wider economic pressures intensify.
The housing market has also been hit, with banks and building societies recalling hundreds of mortgage products and raising interest rates to their highest levels in more than a year, adding to affordability concerns.
Keir Starmer is expected to hold an emergency Cobra meeting this week with senior ministers and Bank of England Governor Andrew Bailey to discuss further support measures, including a potential multi-billion pound package to help households manage rising bills.
Walker warned that the current situation risks repeating the pattern seen in previous crises, where prices rose quickly but fell more slowly, leaving consumers exposed.
“This is not another moment when ordinary households are the ones most affected, and profiteers are taking advantage of the opportunity,” he said.
Existing measures such as energy price caps, fuel duty freezes and targeted support schemes provide short-term relief, but will be eased in coming months, raising questions about long-term protection for consumers.
Industry groups have previously warned against tighter profit controls, arguing that higher profits during price spikes are needed to support long-term investment, including domestic supply and the transition to greener energy.
The windfall tax on North Sea oil and gas producers, first introduced in 2022 and later increased, has had a limited impact on consumer bills during a period of global price volatility.
Profit limits would herald more direct intervention in markets and a significant increase in government involvement.
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