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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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Regulator must look more carefully at energy companies says AM
July 29, 2008 12:00 AM
The Welsh Liberal Democrat Spokesperson on Social Justice, Peter Black, has called on the energy regulator Ofgem to act to curtail energy price rises where suppliers are making excessive profits.
Mr. Black said: "The increase in the cost of fuel is staggering. One of the major price comparison and switching sites has calculated that average household energy bills have gone up by over £550 a year. The average gas bill is now £646 a year, which is over double the figure five years ago, and electricity has gone up by just under 70% to £412.
"Yet the companies themselves don't seem to be too keen to share the pain, preferring to pass the increases right down the line to the beleaguered customer. It is a pattern that is all too common among the private monopolies that the Conservatives created.
"In the last week, two major energy companies have reported on how they are doing. Hard-pressed families will be delighted to know that Scottish and Southern made a profit which amounts to £136 per customer per year and intends paying a 4% dividend out to shareholders in both 2009 and 2010 yet they are talking about how difficult it will be not to pass on price increases to customers. Scottish Power has announced that it made £708m profit in the first half of this year. If this is typical, then all the energy suppliers are doing very nicely.
"The regulator needs to take this into account when the power companies come looking for their next price increase. Customers have a right to expect that the financial burden from the increasing cost of fuel will be shared out fairly. Huge profits for the companies, good dividends for shareholders and misery for consumers isn't fair. Until the power companies learn to act fairly, they shouldn't be allowed another price increase."
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