Caroline Flint: We must stand up against the fuel giants who leave us in cold

AS the Yorkshire Post recently highlighted, and as I argued during a Parliamentary debate on energy prices, something has gone badly wrong with our energy market.

More families are in fuel poverty and struggling to heat their homes. National Energy Action fear the figure could be as high as 6.6 million – levels not seen since the dog days of the last Conservative Government.

The number of households in debt to their electricity and gas suppliers is up too, but four out of five families are paying more for their energy than they need to.

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Confidence in the energy companies is at a near record low. Less than half of the public are satisfied with their energy supplier. But energy companies are enjoying near-record profits and their bosses have awarded themselves huge pay rises and bumper bonuses totalling millions of pounds.

Complaints to the energy companies have soared – often over dodgy tariffs or incorrect billing or meter readings. There were four million in the last year alone – up by 26 per cent in the last three months. Even more go unreported or unresolved. But there are real concerns about whether the watchdogs, the consumer groups, or even the Energy Ombudsman have the powers they need to protect the public

Far from doing everything they can to help, this Government is making things worse, not better, for millions of hardworking families. Its only answer to rising energy bills is to tell the public they’re to blame for not shopping around enough.

But the problem isn’t that people aren’t shopping around enough. The real problem is that there are too many tariffs on offer, they’re too complicated to understand and even when people do switch, they don’t always get a better deal.

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The real problem is that this Government isn’t standing up to the energy giants. Having over 400 tariffs on offer doesn’t serve the public interest – it only serves the interests of the energy companies.

So we need a simple new tariff structure that’s clearer, fairer and will help all customers get a better deal. And we need a proper investigation into the mis-selling that’s gone on in the past – and proper compensation for people who were ripped off.

Nobody should be paying more for their energy bills than they need to. In what other area would we let companies make four out of five families pay more for something than they need to?

Energy isn’t like any other consumer goods – it’s an essential for life. We need to heat our homes, cook our meals and keep the lights on. It’s even more important for pensioners over 75, who are most susceptible to the cold and least able to take advantage of online deals.

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That’s why Ed Miliband announced that, to start with, we would ensure that all pensioners over 75 get the lowest tariff on offer – saving them up to £200 a year.

There may be less money around. But for those four million pensioners, Labour can still deliver fairness in these tough times.

Not by spending more money. But by saying to the big six energy companies that, when people are struggling, and when they are enjoying strong profits, we will ensure that they act in a way that’s responsible and fair to the public.

But, as well as a more responsible energy industry, we also need a more competitive energy market. The energy market is dominated by just six firms, who supply more than 99 per cent of electricity and gas. Three of the energy firms have just announced plans to cut their prices – but only after huge price rises last autumn.

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People want to know why it is energy companies are so quick to put up people’s bill when wholesale prices go up, but so slow to bring them down, when wholesale prices fall.

The fundamental problem is the lack of transparency in the market. The energy companies that generate energy, sell it on to themselves, and then on to customers. If the few big dominant firms were forced to sell the power they generate to any retailer, companies such as supermarkets and others could come into the market, there would be more competition and the upward pressure on prices would be eased.

Last week the Yorkshire Post, through its Editorial column, called for a dynamic, persistent individual who refuses to take “no” as an answer, and who will stand up for consumers let down by Britain’s energy suppliers, to confront the issue.

Labour is ready to answer that call. We’ve got plans to provide real help to families struggling with the energy bills now, and reform to the way our energy market works for the future.