Tuesday, October 18, 2011
Energy bills cut but is it enough?
Yesterday's news that energy firm bosses have agreed a number of measures aimed at reducing household energy bills is very welcome, but do these measures go far enough.
They say that among the measures agreed at the summit, held at the Department of Business, Innovation and Skills with Energy Secretary Chris Huhne and the Prime Minister, were:
* Letters to be sent to eight million consumers who could save £100 by switching from the quarterly credit billing system;
* Government letters to four million vulnerable households - paid for by energy firms - informing them they were eligible for free insulation;
* A campaign to encourage people to consider switching supplier and a commitment to provide energy use data in electronic form to aid making comparisons;
* A report by Ofgem before the end of the year recommending ways to improve conduct and transparency in the industry.
Apparently, millions of customers will receive letters offering advice on how to reduce costs by switching to different payment methods and taking advantage of free or subsidised insulation. In addition suppliers have also agreed to put a message on bills this winter encouraging people to check whether rivals offer a better deal and to provide better information to help them switch.
However, none of this deals with the fact that as prices go up, so the energy companies continue to rake in big profits. At the end of the day there needs to be action to break up the oligopoly that exists in the energy market and I am pleased that there are other measures in hand that appear to be moving in that direction.
They say that among the measures agreed at the summit, held at the Department of Business, Innovation and Skills with Energy Secretary Chris Huhne and the Prime Minister, were:
* Letters to be sent to eight million consumers who could save £100 by switching from the quarterly credit billing system;
* Government letters to four million vulnerable households - paid for by energy firms - informing them they were eligible for free insulation;
* A campaign to encourage people to consider switching supplier and a commitment to provide energy use data in electronic form to aid making comparisons;
* A report by Ofgem before the end of the year recommending ways to improve conduct and transparency in the industry.
Apparently, millions of customers will receive letters offering advice on how to reduce costs by switching to different payment methods and taking advantage of free or subsidised insulation. In addition suppliers have also agreed to put a message on bills this winter encouraging people to check whether rivals offer a better deal and to provide better information to help them switch.
However, none of this deals with the fact that as prices go up, so the energy companies continue to rake in big profits. At the end of the day there needs to be action to break up the oligopoly that exists in the energy market and I am pleased that there are other measures in hand that appear to be moving in that direction.
Comments:
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Got the new boiler and the insulation, paying by direct debit, and switching regularly... where do I go from here, Peter & Chris (Huhne)?
# posted by 
: 4:04 PM
: 4:04 PM
So what is an acceptable profit? Tell me the percentage that is acceptable and how it can be achieved?
It is not my job or that of the state to specify that, That will be determined by a free market. My point is that there is not a free market, that this is artificially inflating profits and it needs correcting.
'Letters to be sent to eight million consumers who could save £100 by switching from the quarterly credit billing system;
* Government letters to four million vulnerable households - paid for by energy firms - informing them they were eligible for free insulation;
* A campaign to encourage people to consider switching supplier and a commitment to provide energy use data in electronic form to aid making comparisons; '
If all this means I am going to have yet more illegal nuisance calls offering me free insulation and/or lower energy bills I am not going to be Dr Happy.
I'm in the same situation as Maen Tramgwydd, and I would rather see the energy companies commit to freezing their prices before their prices freeze me.
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* Government letters to four million vulnerable households - paid for by energy firms - informing them they were eligible for free insulation;
* A campaign to encourage people to consider switching supplier and a commitment to provide energy use data in electronic form to aid making comparisons; '
If all this means I am going to have yet more illegal nuisance calls offering me free insulation and/or lower energy bills I am not going to be Dr Happy.
I'm in the same situation as Maen Tramgwydd, and I would rather see the energy companies commit to freezing their prices before their prices freeze me.
# posted by : 10:18 AM
: 10:18 AM<< Home
