Press Release
Power Chiefs Face Grilling Over Price Increases
Energy Chiefs face an investigation by industry regulator Ofgem as profits soar and inflation busting price increases cause misery and hardship to consumers.
Tom Clarke MP has campaigned for an Inquiry and welcomed the probe but he wants the option of domestic energy prices being subjected to a full investigation by the Competition Commission.
Tom Clarke said: “With this latest round of increases households are facing the highest ever energy bills. The average annual energy bill is expected to rise above £1,000. This is happening at a time when the industry is making record profits. Many households will be plunged into fuel poverty which means paying 10% or more of income on fuel bills. I am seriously concerned about vulnerable household’s ability to cope financially, especially those that have elderly people, young children, a disabled person or someone who is suffering a long-term illness”.
The MP continued: “Bills have risen by 60% over the past five years. During this period I have sought to constructively criticise energy companies, particularly when they held the retail price high for a lot longer than was required. That is when I formed the view that energy suppliers operate like a cartel and it is to the disadvantage of consumers. I’ll continue pressing for a better deal for consumers because I know that people on low incomes, and especially older people who don’t get out much, rely heavily on energy to keep themselves warm. Buying energy to heat your home or to cook food is not a want; it is a need without which we wouldn’t survive. This current climate of cold wet and damp weather means people have no choice but to keep warm, and it is now very expensive to do so. It is not only vulnerable households that will be affected; these latest increases will impact adversely on the budgets of many hard working families”.
Tom Clarke MP concluded: “Ofgem the industry Regulator will lead the inquiry. Energy companies could be fined billions of pounds, if the claims that I and others have made, are substantiated. My campaigning will have been worthwhile if the money overcharged in excessive domestic energy bills is returned to the consumers”.