Speaking after Theresa May’s comments on energy prices Caroline Flint said:
“For six years, I have been telling the Government that the energy market isn’t working and is not delivering fair prices to consumers.
“Today, Theresa May has owned up that all of their tinkering and urging consumers to shop around has failed, and the market isn’t working.
“Even May cannot turn her back on the £8 billion overcharging of the last five years.
“This is the strongest signal yet that a cap on energy prices is coming.”
NOTE TO EDITORS
The Competition and Markets Authority Investigation into the Energy Market final report, June 2016, said:
“we estimated the detriment from excessive prices to the domestic customers of the Six Large Energy Firms to be about £1.4 billion a year on average over 2012 to 2015, the entire period for which we had data, with an upwards trend, reaching almost £2 billion in 2015.”
“We have also noted that, over the period 2011 to mid-2015, average revenue per kWh earned by the Six Large Energy Firms from customers on the standard variable tariff – which about 70% of the customers of the Six Large Energy Firms pay – was around 11% higher for electricity and 15% higher for gas than average revenue earned from customers on other tariffs.”
Approximately 20million energy customers are on the default standard variable tariffs
This year four of the big six announced substantial price increases.
Since September 2015, Caroline Flint has called for a protected tariff – a regulated maximum tariff set by Ofgem – for all standard variable customers. Ofgem has just confirmed a protected tariff for 3.5m prepayment meter customers.
May told the Tory Spring “It is clear to me – and to anyone who looks at it – that the market is not working as it should.”
She added: “Relying on switching alone to keep prices down is clearly not working.
“Our party did not end the unjust and inefficient monopolies of the old nationalised energy corporations only to replace them with a system that traps the poorest customers on the worst deals.
“So we are looking very closely at how we can address this problem, and ensure a fairer deal for everyone.
“We will set out our plans very soon.”