Energy bills are soaring, driving up inflation and
contributing to the cost of living crisis afflicting millions of families hit
by the recession. At the same time, energy companies are enjoying huge profits.
This week, it was revealed that an energy trader for E.ON –
one of the Big Six energy companies operating in the UK – had lost £20m betting
on European energy prices. There is no transparency in the speculative trading
activities of the energy companies.
There is now a real suspicion that the COMPANIES are
privatising the profits from this speculation – for the benefit of the
shareholders - whilst socializing the losses – meaning that we all meet the
cost of those losses in our bills. I’ve written to the regulator, OFGEM
requesting a comprehensive investigation.
The government’s only answers to rising energy bills are to
tell consumers they’re to blame for not shopping around enough and to cut back
on the support it is offering to help people heat their homes.
There are things the government could do.
- First, it could make the
energy companies check that all pensioners over 75 are on the cheapest possible
tariff – saving up to 4 million pensioners as much as £200 a year.
- Second, it could make the
energy companies ensure that all vulnerable pensioners and low-income
families with children at risk of fuel poverty, and who receive the Cold
Weather Payment, automatically receive the Warm Homes Discount.
- Third, it could reform the
energy market by breaking the dominance of the Big Six, by requiring them
to sell power into a pool, allowing new businesses to enter the market,
increasing competition and driving down energy bills for families and
businesses.
- Fourthly, it could protect small
businesses from the energy companies’ rip-off tactics.
But, I don’t expect it will.
