Campaigners demand action on energy prices

CAMPAIGN groups have warned the coalition government that strong words over dealing with the six big energy companies need to be backed up by action to keep prices down.

The comments came as Lib Dem Energy Secretary Chris Huhne announced he planned to get tough on the energy suppliers in his conference speech at the party conference in Birmingham.

Mr Huhne outlined a series of measures that he believes could save consumers up to £200 a year by forcing the companies to publish alternative tariffs and making it easier for households to switch supplier.

He also said he would give the watchdog Ofgem greater powers to take action and force through changes, including allowing it to award unlimited compensation to consumers.

He said: “We are determined to get tough with the big six energy companies to ensure the consumer gets the best possible deal. We want simpler tariffs requiring energy companies to tell you whether you could buy more cheaply on another tariff.”

He went on: “I want to help households save money, simpler charging, clearer bills, quicker switching and more consumer-friendly firms – 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.

“I believe Ofgem should have new powers to secure redress for consumers – money back for bad behaviour – and we will stop the energy companies from blocking action by Ofgem, which can delay matters by a year.”

While the announcement was welcomed by campaign groups, there was scepticism it would be pushed through after a year where suppliers have increased prices by up to 20 per cent, including Scottish and Southern’s hike of 18 per cent in gas charges and 14 per cent in electricity.

Citizens Advice Scotland’s head of policy Susan McPhee said: “This announcement is a sign that the government is listening to these concerns, and we welcome that. But this must be the start of a process, not the end. We need sustained long-term action.”

Richard Lloyd, executive director at Which?, said: “Giving people information on their bills about cheaper tariffs is a step towards helping people to manage spiralling energy costs.

“However, when 60 per cent of domestic energy customers never switch, the government and Ofgem must now take action to inject genuine competition into the energy market.”

Political opponents questioned why it had taken Mr Huhne so long to speak out.

Scottish Labour shadow minister Tom Greatrex urged the coalition government to stop shouting “ineffectually from the sidelines”. He said: “Chris Huhne has at last broken his vow of silence on the big six energy firms – but when it comes to taking real action to help the millions of struggling consumers, he is nowhere to be seen.”

Meanwhile, First Minister Alex Salmond announced a conference on energy costs.

The SNP leader has called for a “fuel summit” to help householders facing rising bills, saying: “Scotland is an energy-rich country and it is a disgrace that around 770,000 households here are in fuel poverty.”