Press Release
New Deal For Energy Consumers
Labour MP Tom Clarke has resolved to inflict the maximum pressure upon energy companies as he prepares for the Debate in Westminster Hall on Tuesday 23 rd January.
Tom Clarke MP said:
“There is widespread discontent in the vast bulk of households as fuel bills have rocketed over the last 3 years. Keeping warm, cooking and hot water are not luxuries, these are basic needs, but consumers have no real choice as energy companies leap-frog each other in an upward spiral of relentless heavy price increases. No other product or commodity has risen so steeply or sharply during this period”.
“I make absolutely no apology for setting myself up as the energy suppliers’ biggest critic. It is my intention: to harass cajole and constructively criticise these companies at every opportunity inside and outside Parliament as energy bills have soared beyond belief and more importantly outwith the financial budget of people on low incomes, which of course includes our pensioners. Not only are consumers suffering the largest increases in living memory – unnecessary in my view, which I can back up with evidence - I was further infuriated to note that one such company, according to recent press reports have decided to levy another charge of £5 for sending a ‘reminder letter’ to those who struggle to pay, albeit, late. What a damn disgrace! Households that are still managing to pay fuel bills at all, never mind late, are working minor miracles.
Nor I am satisfied with the response uttered meekly from the Office of Gas and Electricity Markets (OFGEM) that consumers should move to an alternative supplier. The duty of OFGEM is to promote choice and value for all gas and electricity customers. And among its secondary duties it should have regard to the interests of vulnerable consumers.
I am particularly concerned about the problems of vulnerable consumers such as pensioners. Around 2.25 million households in the UK are classified as being in fuel poverty, spending more than 10% of their income on energy to heat their homes. Substantial progress was made during the first five years of the Labour Government as the numbers in fuel poverty halved.
One extremely important worth making is that Pre-payment meters are the most expensive way to pay for energy, costing around £60 a year more than payment by direct debit. Nearly 6 million energy consumers through either gas or electricity pay for their energy through a pre-payment meter. Suppliers are not slow to require consumers who have fallen into arrears on their energy bills to use a pre-payment meter. We shouldn’t lose sight of the fact that arrears often occur because suppliers have provided inaccurate estimated bills, causing a build-up of debt.
The MP berated the energy companies and accused them of adopting a ‘jungle mentality’, when he said:
“They are acting like a pack of hyenas rampaging through every household in Britain, particularly the weakest in terms of income, by extracting a substantially inflated price for supplying domestic energy, and therefore consumers need much more protection”.