It's time to turn the heat up on the Government to tackle the 'Big Six'

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Saturday, October 29, 2011
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Leicester Mercury

With the nights drawing in and the weather getting colder, people are switching their heating on – and worrying about the cost of their gas and electricity bills.

Energy charges are up a staggering 20 per cent this year. The average annual dual fuel bill is now £1,345 per household, which means energy bills are now one of the single biggest outgoings people face.

The National Grid is predicting this winter will be as cold as the last – and December, 2010, was the coldest on record.

With food prices going up as well, many of my constituents are wondering how they are going to afford to heat their homes, pay for the weekly shop and find money for Christmas too.

Across the country, 6.4 million households already spend a tenth or more of their income on heating and light. Rising prices mean even more homes could face this "fuel poverty" in future.

Part of the reason why energy bills are rising is that wholesale energy prices have increased, but that is not the whole story. Wholesale prices for gas hit a record high in 2008, but have fallen since.

Yet energy prices and bills have continued to increase.

Meanwhile, energy company profits have soared in the last six months.

Ofgem, the energy regulator, says the profit margins of energy companies have increased from £15 per consumer in June to £125 now.

This is completely unfair.

The Government should be standing up to the "Big Six" energy companies, who provide our gas and electricity, to help reduce prices now and reform the way our energy market works for the long-term.

Instead, the Government is telling people it's down to them alone: that they should just shop around, get a better deal, and then switch their energy supplier.

Of course it makes sense for people to try to get the best deal, but the Government doesn't seem to understand how hard it can be to figure out what the real costs will be for your home, or to compare one company's deal with another.

The Government should demand all energy companies provide simple, clear tariffs, so it's easy for people to figure out how to get the best deal. Any mis-selling of energy deals must be investigated and people who have been ripped off properly compensated.

One way to cut energy bills in future would be to require the "Big Six" to pool their energy centrally.

Any company could then buy and supply energy from this pool.

This would allow new businesses into the market, increase competition and drive down costs for the 80 per cent of people who currently pay too much for their bills.

In these tough economic times – when costs are soaring and people are worried about getting a job, or keeping their job – the Government must do everything it can to help people who are struggling to make ends meet.

This Government's warm words won't do anything to help my constituents heat their homes this winter.

If You would like to contact Liz Kendall MP, telephone 0116 204 4980 or e-mail her at:

liz.kendall.mp@parliament.co.uk

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