LOCAL MP Stephen Doughty raised the issue of energy prices at Prime Minister’s Questions this week – calling the government’s plan to look into profit margins of the Big 6 companies ‘too little too late’
The Cardiff South & Penarth MP asked David Cameron yesterday, February 12: “Does the Prime Minister agree that, after months of letting energy companies get away with increasing their profits on the back of hard-working people across the country, the Energy Secretary’s letter to the regulator this week was simply too little, too late?”
The letter Stephen referred to was sent by Energy Secretary, Ed Davey, to the energy regulator Ofgem, asking it to look into the profit margins being made by the Big Six energy companies through supplying gas – in some cases five times higher than for supplying household electricity – and whether they should be the subject of a market investigation.
However, Labour have accused Mr Davey of spending months defending energy firms - despite evidence of overcharging.
Speaking after the debate, Mr Doughty said: “This government has let the energy companies get away with increasing profits on the back of spiralling bills.
“The Big 6 supply energy to 97% of homes and run 70% of Britain’s power stations. Lack of competition means people can’t shop around to get a fair deal and so get overcharged.
“Only a price freeze, and action to stop these firms overcharging in future - as Labour has proposed -will do.”
Ed Miliband has made the commitment that a future Labour Government will introduce a temporary freeze in energy prices for 20 months, and use the opportunity to reset the energy market to ensure that it works in the interests of consumers and businesses.