The head of British Gas has called on the UK Government to lift its ban on developing new North Sea oil and gas fields, arguing the move would help ease rising energy costs and strengthen energy security.
Chris O'Shea, chief executive of Centrica, said boosting domestic production should form part of a broader strategy to stabilise prices following recent global shocks.
He said: “I do think that we should look at producing the resources that we have got ourselves. It makes sense. If you’ve got resources, you should.
“It’s not a silver bullet; nothing in and of itself will fix this. But these activities will bring prices down. It would definitely make a difference.”
Mr O’Shea added that increasing North Sea output would be enough to “make a difference across Europe”, while stressing the need for greater gas storage, renewables and battery capacity.
His comments add to growing pressure on Labour to reconsider its position. However, Energy Secretary Ed Miliband has rejected the argument, saying increased UK production would not lower global prices.
Mr O’Shea also warned that ongoing tensions in the Middle East are likely to push up costs, particularly for motorists.
He said: “My gut feel is that you’ll see more of an impact of this at the petrol pumps than you will in bills.”
He added that price rises may be “inescapable” if the conflict continues, and urged targeted government support for the most vulnerable households rather than universal subsidies.
Pressure is also mounting on Chancellor Rachel Reeves to reconsider the Energy Profits Levy, with industry figures warning the windfall tax is deterring investment in the North Sea.
Critics argue that removing or scaling back the EPL would unlock capital, support domestic production and help ease long-term energy costs, particularly as security concerns intensify.