Energy News

Huhne to take on energy giants

Tuesday 20 September, 2011

By Garnet Roach - editorial@consumerchoices.co.uk

Energy secretary Chris Huhne pledges to “get tough” on energy providers.

Energy secretary Chris Huhne will take the stage at the Lib Dem conference this afternoon and pledge to help consumers get a better deal from the “big six” energy providers.

As well as cutting the time it takes to switch energy supplier, Huhne will also call for more transparency from providers on how to get the best prices.

He will say: “We want simpler tariffs, requiring energy companies to tell you whether you could buy more cheaply on another tariff,” according to the BBC and other publications.

“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.

“That looks to me like predatory pricing. It must and will stop,” he will say.

Energy regulator Ofgem already has the power to fine firms up to 10% of their annual turnover, but Huhne wants suppliers guilty of “bad behaviour” to compensate customers as well.

Consumers saw a second round of price hikes this year as the “big six” providers - British Gas, Scottish Power, Scottish & Southern, Npower, E.ON and EDF - upped costs in recent months.

“In a year when prices have increased by £224 or 21% this is just the kind of ammunition that consumers need,” said Ann Robinson, director of consumer policy at uSwitch.com.

“However, it's also important that consumers feel that their current supplier is giving them a fair deal and the best way of achieving this is by highlighting the cheapest deals on bills,” she added.

“Once consumers see the savings available it should prompt many more to help themselves by taking advantage of more competitive prices, whether from their existing or a new supplier.”