Christopher Pincher calls for more transparency in energy prices

Tamworth’s Member of Parliament Christopher Pincher, who is an active member of the Energy and Climate Change Select Committee, has welcomed Ofgem’s proposed simplification plan to make energy bills more straightforward.  And he has called for greater competition in the wholesale market to help drive down retail prices.

Mr. Pincher said:

“I am disappointed that the energy companies’ profit margin has hit a staggering £125 per customer.   I know that the margin fluctuates and of course we want the companies to turn a profit so they can reinvest in much needed new infrastructure, but people are struggling to pay their spiralling energy bills so we need a new approach.”

“I am pleased that Ofgem are introducing a simplification plan that will help consumers find the best deals.   Under the plan suppliers will be required to have ‘no-frills tariffs’, consisting of a standing charge, fixed by Ofgem, and a unit charge for energy used – which will be different between suppliers, enabling consumers to have clear price comparisons. Ofgem, the Department for Energy and Climate Change and the Energy Select Committee are looking at ways to help people save money on their energy bills and I look forward to further announcements.”

“However, more needs to be done to make the wholesale market, from which the companies buy the energy they sell, more transparent.

Ofgem’s Chief Executive, Alistair Buchanan, acknowledges more needs to be done:

“When consumers face energy bills at around £1,345 they must have complete confidence that this price is set by companies competing in a fully competitive market.”

And the Chairman of the Energy and Climate Change Select Committee, Tim Yeo MP also condemned the “absolutely crass behaviour” of the energy companies.  He said:

“They [the energy companies] are not allowed to collude, but there is effectively a cartel here, the prices all go up in concert and it is absolutely impossible for new companies to come into the market.  The process of trying to switch from one supplier to another is hideously complicated – very off-putting even for quite intelligent people.”

For more information about the Energy and Climate Change Select Committee please go to: http://www.parliament.uk/ecc