'At worse, we'll make more money': Gas chief's 'joke' over crippling fuel price hikes

Mark Owen-Lloyd, head of power trading at E.On, one of Britain’s big six energy giants, was speaking at an industry seminar about the implications of crippling fuel price hikes.

When asked what would happen in a ‘worst case scenario’, with gas and oil prices staying at high levels, he said: ‘It’ll make more money for us’.

Suffering: Many pensioners face a choice between food or fuel this winter... but at least E.On's head of power trading, Mark Owen-Llloyd, sees the funny side

The energy firm today apologised unreservedly for Owen-Lloyd's blunder and warned he could face disciplinary action.

The blunder has been dubbed ‘doing a Ratner’ - in memory of the famous remarks by Gerald Ratner back in 1991, when he admitted selling ‘crap’ in his High Street jewellery shops.

Many families are worried about weathering a cold winter as dual fuel bills – electricity and gas – have climbed from £942 for the average household to more than £1,400 since the start of this year.

His employer has been quick to dissociate itself from the gaffe, which has been condemned by the watchdog Energywatch.

A spokesman for  Energywatch said: "You can understand traders being glib together but it is very poor taste to do so the day before the Government announces a much-needed package to tackle fuel poverty."

Gerald Ratner who famously admitted selling 'crap' in his high street stores

But a Help the Aged spokesman slammed the jibe.

He said: "Fuel poverty is no laughing matter. One in four older people struggle to pay their fuel bills and millions may be forced to chose between heating and eating this winter."

An E.On spokesman said: "It was a thoroughly inappropriate comment and we would like to offer an apology.

"We are aware of our customers' difficulties with rising fuel prices and completely understand why people wouldn't find it funny.

"It has been escalated and his chief executive has been made aware - whether or not there will be disciplinary action I cannot say yet."

The spokesman added: ‘We agree this was insensitive but Mr Owen-Llloyd was obviously saying this with his trader’s hat on.

'Our retail business isn’t making any money at the moment, so it’s completely inappropriate to say something like that.’

Labour MP Roger Godsiff described the joke as a "very cynical comment that merely shows the contempt that major energy companies have for the general public."

Labour backbencher Roger Godsiff has been a leading proponent in calling on Gordon Brown to issue a windfall tax on major energy companies.

He said: "It was a very cynical comment that merely shows the contempt that major energy companies have for the general public.

"The really sad thing is, the joke is true and that's why we need the windfall tax."

The seminar hosted by industry regulator Ofgem was being held as the Government finalised its plans to cut customers’ energy bills by up to £275 a year, in a bid to stop fuel poverty among the most vulnerable.

Asked about the joke, Environment Secretary Hilary Benn told BBC Radio 4's Today programme: "Like many people, I don't think that was very funny."

Energy companies warned yesterday that a harsh winter could push gas prices upwards once again because they do not have enough gas in storage for bad conditions.

However the three biggest energy suppliers said that most of the world’s liquified natural gas (LNG) – which can be stored for times of need – is being sold to countries in the Far East that can afford to pay higher prices than energy companies in the UK.

Gordon Brown is to announce a deal that should see up to £275 being cut from families’ energy bills, however there will be no one-off payment as campaigners had hoped for

The deal, thrashed out by ministers and the six major energy companies, is expected to make all 25 million homes in Britain eligible for discounts on loft and cavity wall insulation and other energy saving improvements.

There are an estimated 5 million people who will fall into fuel poverty this winter, defined as anyone who is forced to spend £10 in every £100 of their income to heat or light their home.

The last high-profile executive to ‘do a Ratner’ was Barclays chief executive Matt Barrett, who business observers open-mouthed when he and his family did not use the credit cards because they are too expensive.