Who cares big six energy companies or coalition

david-cameron-ed-milibandWell folks what have we learnt from David Cameron at prime ministers question time he has accuse Ed Miliband of it being a conman over the energy price increases which the speaker of the house had to reprimand David Cameron for using language that is not of becoming of him.

Not only is this an insult to Ed Miliband, David Cameron should actually give a public apology for causing injuries to the feelings. Not only has David Cameron not been able to answer the questions from Ed Miliband it’s about time that he changes his spin doctor to find social policies for David Cameron instead of using the same old scratch record.

Howdy boys and gal checkout this and make up your minds who is correct:

It’s highly unsurprisingly to learn from Ian Lavery MP who bluntly told rapacious energy companies 30 October 2013 that they should face renationalisation if they charge bills which people simply can’t afford.

Mr Lavery intervened as company executives presented a shameful spectacle in front of the Commons energy select committee.

Members of the cross-party committee repeatedly challenged the executives to explain huge price hikes by four companies expected to be followed soon by the remaining two of the big six.

But the loyal company men ducked and dodged as even Tory committee members accused them of “acting in concert” on price rises and displaying “a lack of transparency” over their finances.

It was all too much for Mr Lavery, who boomed out that three million elderly people feared that they would not keep warm this winter amid predictions that 24,000 people would die from cold.

“It is an absolute outrage in one of the richest countries of the world that this has been allowed to happen,” he said as he glared across at executives from E.On, SSE and nPower.

He reeled off figures for the huge profits raked in by the big six companies.

SSE managing director William Morris pleaded that “these profits are fair.”

Mr Lavery retorted sharply: “How can these profits be fair if people cannot afford to pay for their energy?”

And he told the executives that there was now a real potential for investigating the possibility of renationalising the energy industry “because you cannot run the companies.”

The bosses looked glum when the managing director of relatively small concern Ovo Energy told MPs that he could not understand why the big companies were charging so much, adding: “I don’t know where all the money is going.”

Ovo managing director Stephen Fitzpatrick went on: “It looks to me that a lot of the energy companies including the big six are charging the maximum prices they can get away with, and then maintain an illusion of competitive pricing.”

E.On chief executive Tony Cocker tried to fob off MPs by calling for “a very thorough” Competition Commission investigation into energy prices. And he suggested to Mr Lavery that if his constituents were worried about not being able to pay their bills, they could “call us, email us, or whatever.”

Glasgow Labour MP John Robertson told the executives: “Don’t you understand that the people in this country do not trust you.”

SSE managing director Guy Johnson replied lamely: “We do have a profound problem on our hands, because we are not getting our message across.”

Mr Robertson asked why E.On declared profits and dividends based on combined operations of energy generation and retail supply, despite claiming that these two parts of the business were “stand-alone.”

He alleged that bills were soaring “while you are still making 20 odd per cent profit on distribution.”

Tory committee member Peter Lilley suggested that the companies’ finances were “all very wonky.” He wondered if they’d simply taken some of their profits offshore.

We all know that all the big six energy companies don’t give monkeys about their customers who are low incomes they rather see them on token meters.

British Prime Minister David Cameron (L) speaks at the Clean Energy Ministerial conference (CEM3) alongside British Energy Secretary Ed Dave-865543As for Energy Secretary Ed Davey has promised to cut the time it takes to switch energy supplier to improve competition and drive down prices.

He told MPs his “ambition” was to reduce it from the current five weeks to 24 hours, but added that the change would not “happen overnight”.

Mr Davey also promised “criminal sanctions” for companies found to have manipulated the energy market.

Instead he puts the blame on Labour which they accused the government of being “too weak” to stand up to energy firms.

The secretary of state was announcing a review of energy prices and competition in the Commons.

The government is under pressure to help people facing higher gas and electricity bills, with Labour calling for a price freeze.

The coalition’s answer has been to encourage households to switch suppliers – but Mr Davey has accused the “big six” energy companies of anti-competitive practices by “trying to make it more difficult” to do that.

“If you can change your broadband provider with a few clicks of the mouse why shouldn’t you be able to do the same with your gas or electric?

“It shouldn’t take five weeks for the change to take effect – 24-hour switching is my ambition.”

He praised First Utility for making progress towards the 24-hour target and said other suppliers, including E.On, SSC and smaller independent firms had agreed to talks on speeding up switching.

But he added: “This will not happen overnight. We could announce 24-hour switching and then suppliers will say, ‘OK, we will put up our prices to cover costs.’ That cannot and will not happen.”

He said he wanted to work with the industry to speed up switching but, he added, “we are are prepared to take action, if required, to compel those who drag their heels”.

“We are going to consult on increasing the sanctions for manipulation of the energy markets, so that they carry criminal penalties for the first time,” the Lib Dem MP said.

He said he had also urged energy companies to return cash to consumers who have over-paid through direct debits or closed their accounts.

But Labour’s shadow energy secretary Caroline Flint said: “We don’t need another review, we need action – action to freeze people’s energy bills and fix this broken market.

“Breaking up the big six by ring-fencing their generation from supply, put an end to secret deals and requiring all electricity to bought and sold via an open exchange and a tough new watchdog with the power to force these companies to cut their prices when wholesale costs fall.”

She ridiculed the government’s advice to consumers to shop around for the best deal, telling MPs: “Even the cheapest tariff in a rigged market will still not be a good deal.”

“Each and every time they give the energy companies what they want and leave consumers to foot the bill,” she added.


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