The energy debate affects everyone of us, whether it’s concerns about rising bills, fracking or the pro and cons of renewable energy. Here IAN MARCHANT, a former chief executive of leading utility company SSE, answers some of The Northern Echo’s questions on what is an increasingly hot topic.

Q: What should consumers expect to happen to gas and electricity prices in the short to medium term?

A: “Six months ago a price rise was inevitable because the industry’s costs were going up across the board. Now wholesale costs of energy are drifting down, in the past few weeks we’ve seen oil and gas markets just drop a bit and they are probably about five per cent lower than they were at the start of the winter. Increases in the cost of Government schemes, which has piled pressure on the industry, are also being significantly moderated, as we have seen.

All this means there is a more benign outlook for prices for the next two years than there was six months ago. There is a good chance therefore there won’t be a fresh round of price increases in the next 18 months or so, indeed there could be a small reduction. After that it is really difficult to predict what might happen because of the vagaries of worldwide events, which can be a big driver.”

Q: Why is that UK energy suppliers appear quick to increase  the cost of bills in a ‘sheep-like’ fashion when wholesale costs rise, but rarely pass on discounts to customers when they fall?

A: “I don’t believe that is true, having been partly responsible myself for setting prices for a number of years. The moves up and down were largely symmetrical. I do agree however, that the energy market is in need of a fundamental review.”

Q: What would you like to see happen to the energy supply market?

A: “At the moment we have a market that is being intervened in and regulated too much so we should either strip the regulation away, let market forces work and encourage new entrants to the market, or we should regulate properly and systematically.

Virtually every week there is a new intervention from either [Government regulator] Ofgem, the Department of Energy and Climate Change, the Treasury or the political opposition. My instinct is the market forces solution, but as the UK moves from indigenous sources of carbon-based energy to a low-carbon economy then maybe you need to have a regulatory period of five to ten years where you increase the confidence in the investment decisions being made. After that you could allow market forces to re-emerge.”

Q: What do you think to Labour’s plan to freeze energy prices if it wins power in the next election?

A: “It will make things worse. Invariably when you freeze prices in the energy sector you get a freeze in investment and/or an increase in prices at the end. I think the market will deliver an effective freeze over the coming months without the blunt intervention of a politically inspired freeze.”

Q: The Government hopes fracking - a method used to extract shale gas from deep underground – could answer many of the UK’s energy needs, but it is proving hugely controversial partly due to its potential environment impact. What is your view on it?

A: “I can see the arguments on both sides. It produces more carbon than renewable, but less than traditional methods of coal burning. It has an environmental impact in the region where you do it, but it has an economic benefit also. In moderation it probably makes sense, but it is not a silver bullet to our problems.”

Q: Aside from renewables, what do you think of other methods of producing energy such as nuclear or using new technology to harvest energy from coal reserves deep under the North Sea, something The Northern Echo has recently reported on?

A: “You’re talking about basically heating up the coal that is under the North Sea and capturing the energy created from it. I looked at this about five years ago and was concerned about the risks onshore, but offshore it looks a different equation.

As in nuclear generation these are new technologies that need to be supported and explored to see if they can make a real difference to the UK’s energy mix.”

Q: What about your own future in the industry and why have you chosen Durham University to make a public lecture on the future for energy in the UK?

A: “I have been fortunate to work in the energy industry for 25 years and continue to be involved in many aspects of it. Our modern life is almost completely dependent on reliable and affordable energy and as result rarely a day goes by without the industry making headlines. It is an interesting and challenging sector. Returning to Durham to share some of my thoughts is like a homecoming, I was an undergraduate there, completing a degree in economics, and also met my wife at Durham so it has a place in my heart.”

:: Ian Marchant is a non-executive chairman of renewable energy company Infinis and was recently announced as the next chairman of international energy services company John Wood Group PLC. He is president of the UK’s Energy Institute and a visiting professor at Durham University’s Business School.

He is delivering a free public lecture at Durham University’s Calman Learning Centre on Thursday February 6 from 6.30pm to 7.30pm. Anyone wishing to attend should register at www.eventbrite.co.uk/e/my-vision-of-a-uk-energy-future-lecture-by-ian-marchant-tickets-9744725737