Latest Public Sector News

17.10.11

Energy summit aimed at cutting prices

The Government has called for action to cut energy bills faster and more effectively, ahead of a meeting with the big six power firms, consumer groups and the regulator Ofgem.

The average household energy bill has risen by £300 over the last year, causing a squeeze on household budgets and concern at the top levels of Government, especially at the Department of Energy and Climate Change. Energy regulator Ofgem has published a ‘simplification plan’, which would mean customers only have to compare one price between energy suppliers – the unit energy charge.

British Gas and nPower have promised not to raise energy prices again this year. SSE also plans to sell its power on the open market instead of through its supply arm, which could save customers lots of money.

In a joint statement with Energy Secretary Chris Huhne on the MoneySavingExpert.com website, David Cameron said: “Energy bills have increased by more than £100 for most people since this summer. These price rises couldn't come at a worse time for consumers, who are already feeling the pinch from rising petrol prices and the cost of the weekly shop.

“Today we are bringing together the industry, consumer groups and Ofgem for an energy summit that will focus on getting people the help they need to reduce their bills in time for this winter.

“Our intention is for today's summit to be the start of a much more active engagement with consumers, with us all working harder and faster to deliver an energy market that is trusted, simple and transparent A market that puts the consumer first and gets these energy bills down as much as possible. The easiest ways to get energy bills down quickly are to get people paying the lowest possible tariffs and to reduce the amount of energy that is wasted.

“Our intention is for today's summit to be the start of a much more active engagement with consumers, with us all working harder and faster to deliver an energy market that is trusted, simple and transparent.”

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