This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-14979927
The article has changed 8 times. There is an RSS feed of changes available.
Version 3 | Version 4 |
---|---|
Chris Huhne pledges to 'get tough' over energy prices | Chris Huhne pledges to 'get tough' over energy prices |
(40 minutes later) | |
Energy Secretary Chris Huhne has said he is determined to "get tough" with the six biggest energy companies, in his speech to the Lib Dem conference. | Energy Secretary Chris Huhne has said he is determined to "get tough" with the six biggest energy companies, in his speech to the Lib Dem conference. |
He said he wanted to help people save money by making it easier to spot cheaper deals and switch providers. | |
But he denied telling a newspaper that consumers were too lazy to shop around for lower prices. | |
Mr Huhne also said Ofgem should be able to force companies to give money back to customers for "bad behaviour". | |
The energy secretary said the government wanted to see "simpler tariffs" and a system in which firms were required "to tell you whether you could buy more cheaply on another tariff". | |
He did not give details of exactly how firms would be forced to change their practices, but did discuss beefing up Ofgem's regulatory powers. | |
'Consumer charities' | |
Mr Huhne has faced criticism after he was quoted by the Times newspaper as saying consumers "do not bother" to hunt for better deals on electricity and gas, and spent more time shopping for "£25 toaster" than an energy supplier. | |
But the minister told the conference in Birmingham: "Contrary to the Times' report, I neither said nor meant that this was laziness. | |
"It is just that consumers still think that they face the same bill whoever they go to." | |
As well as promising to take action against the "big six" energy companies - British Gas, Scottish Power, Scottish and Southern, Npower, E.On and EDF - Mr Huhne said he wanted to encourage new, small firms to enter the energy market. | |
He also said he wanted to see "consumer-friendly" organisations - co-ops, partnerships, consumer charities - dedicated to doing the shopping around for consumers to make sure that you are always on the best deal, even if you do not have time to check yourself". | |
Ofgem already has powers to fine companies up to 10% of their annual turnover, but Mr Huhne said it should get new powers to make firms pay up to customers when there has been "bad behaviour" - such as breaching licence conditions. | |
Other plans include stopping delays to Ofgem rulings by giving firms a right of appeal - rather than allowing them to refer rulings to the Competition Commission, which can hold up the process. | Other plans include stopping delays to Ofgem rulings by giving firms a right of appeal - rather than allowing them to refer rulings to the Competition Commission, which can hold up the process. |
And he criticised those who keep prices high for millions of customers, while offering cut-price deals online - something he says is anti-competitive. | And he criticised those who keep prices high for millions of customers, while offering cut-price deals online - something he says is anti-competitive. |
'More investment' | |
"It's not fair that big energy companies can push their prices up for the vast majority of their consumers, who do not switch, while introducing cut-throat offers for new customers that stop small firms entering the market," he said. | |
"That looks to me like predatory pricing. It must and will stop." | "That looks to me like predatory pricing. It must and will stop." |
He also said it "makes sense" to reduce reliance on expensive oil and gas and promote instead low-carbon energy businesses. | He also said it "makes sense" to reduce reliance on expensive oil and gas and promote instead low-carbon energy businesses. |
And he pledged to make people in "fuel poverty" - defined as households which spend more than 10% of their income on fuel costs - a priority for the government's Green Deal - which aims to allow people to make their homes more energy efficient and pay for it out of the resulting savings to their gas and electricity bills in the long term. | And he pledged to make people in "fuel poverty" - defined as households which spend more than 10% of their income on fuel costs - a priority for the government's Green Deal - which aims to allow people to make their homes more energy efficient and pay for it out of the resulting savings to their gas and electricity bills in the long term. |
John Cridland, CBI director general, welcomed help for consumers, but said high energy prices also partly reflected "the critical need for energy investment for a low-carbon future". | |
And he added: "We do need ministers to be crystal clear on energy policy if vital business investment is to be secured." | |
Mr Huhne is still waiting to hear whether he will face charges over allegations he asked his wife to accept his speeding points for him in 2003 - which he denies. | |