There's much talk about morality and markets but it is high time the government put its money where its mouth is. Many people are becoming increasingly aware of the scandal concerning the behaviour of domestic energy suppliers -what a new campaign calls the big six energy fix.
The top six energy companies are over-charging customers and coining in excessive profits. In the first half of 2011 the big six made almost £10 billion in profit. Last October, the regulator OFGEM revealed that the big six increased their profit margins for dual-fuel deals by a staggering 733% (from £15 to £125 per household) with OFGEM conceding that 'we do not have a fully competitive energy market'.
Energy is an essential human need - we all require affordable energy to light and heat our homes and to run our businesses - yet for many the stark reality is that energy is increasingly unaffordable.
The average annual household bill for gas and electricity has more than doubled from approximately £500 in 2006 to over £1200 in 2011. Some say it could rise to over £3,000 in just 8 years.
The impact is harsh for those on lower and middle incomes which are being squeezed. Hundreds of thousands are falling into fuel poverty which is when they have to spend more than 10% of their income on energy.
The campaign urges the government to impose a levy on excess profits of the type employed by governments of all colours in the past.
Revenues could offer immediate help to those living in fuel poverty. But it's best that all homes are insulated and highly energy efficient using the proceeds of the levy. Such a Green New Deal would also provide jobs for thousands on the dole.
The regulator should also ensure that the cost of the levy isn't passed on to the consumer. The Government should provide the regulator with new powers to cap prices. This could be linked to the wholesale price so that energy companies can still make a reasonable profit to guarantee future investment.
Please sign the petition at www.endthebigsixenergyfix.org.uk
We should never have fallen for the Con trick of privatising essential utilities but we are where we are. Sadly, the regulator has been a toothless tiger. Change for the better is now urgent.
Newcastle Chronicle and Journal
| Promoted by Paul Foy on behalf of Dave Anderson, both of St Cuthbert's Church Hall, Shibdon Road, Blaydon, NE21 5PT |