Department of Energy and Climate Change minister Greg Barker has stated that energy company profits, frequently criticised by many, are necessary to fund new power generation plants in future.
His comments were published as further speculation emerged that additional rises in energy prices would soon be announced.
Among these, British Gas is expected to raise its household energy prices by up to 8 per cent.
Mr Barker told the Daily Mail: “I think overall we have got the lowest electricity prices in Europe and the fourth lowest gas prices.”
Reforms to the Energy Bill and tariffs had increased competition and would see consumers “get a better deal”, he said.
But he added that reforms to the energy market to increase competition and reform of the number of tariffs on offer would “ensure consumers get a better deal”.
The figure of £110bn has been quoted as the sum required to build new plant to ensure the UK “keeps the lights on” in the future.