Pages

Theresa may echoes ed Miliband with a pledge to reform the energy market

The Prime Minister says the conservative spring conference that the market is not working and she is ready to step in’

Theresa May echoes Ed Miliband with promise to reform energy market

The UK government Theresa may was preparing to intervene in Britain’s energy market to weaken the influence of the “big six” suppliers and stop the poorest families have the most expensive rates.

In his speech, that there were echoes of the previous labour leader, ed Miliband, who has promised to introduce a freeze in energy prices, the Prime Minister argued that the market was “clearly not working for all consumers.”

Addressing the conservative spring party conference in Cardiff, she said she supported competition, but was willing, on behalf of consumers.

“Energy is not a luxury,” she said. “It is a necessity of life. But it is obvious to me – and the one who looks at it – that the market is not working as it should.”

Prime Minister from the conservative party said that prices for 15 years has grown by 158%, hitting ordinary working families with high heating bills and lighting.

“The vast majority of consumers, especially low-income, not the most expensive tariffs,” she added. “To rely on switching to keep prices down, apparently is not working.”

Can argue that her conservative party to end the “inefficient” monopoly nationalized energy companies simply replace them with a system that has trapped the poorest.

“So we look very carefully at how we can solve this problem and ensure a fair deal for all,” said the Prime Minister. “We will be very soon our plans.”

Maybe it was a warning that it will intervene in broken markets with the conservative party conference last year. But the government has faced growing pressure to introduce a price threshold, after five of the six largest electricity suppliers raised prices for millions of people in recent months, some by as much as £109 a year for consumers with dual-fuel.

Energy regulator ofgem last month announced to the deputies that he had the power to impose such a restriction, but only if Directed by Ministers. The government is expected to present his plan in the green paper in April.

Ministers said Thursday that it is unacceptable that customers of big energy companies had to pay more than necessary. However, energy Minister Jesse Norman, added: “it should be noted that wholesale prices, which account for about half of the average bill, is still lower than in 2014. This time, not for crisis, but for sober reflection”.

In the house debates concerning energy consumption, the Deputy-conservative John Penrose has repeated his call for relative price threshold, where there is a limit to the gap between the worst and best offers. “According to these proposals, energy companies would still be able to compete on price,” he said.

After discussion, analysts at investment Bank jefferies, said he regarded the government action as more likely. First utility, one of the largest suppliers outside of the six said it was encouraging, perhaps, comments, and “government intervention now seems like the only way to ensure the benefits of competition works for all customers”.

But comparison site and “British gas”, the largest energy supplier in the UK, argued that any price cap, will ultimately harm competition and consumers.

“Bring restrictions on the prices and we will be back to normal, with higher prices, even more detached consumers and Suppliers with no reason to offer good deals,” said Richard Neudegg, head of the Department regulation in uSwitch.com.

Charity citizens advice argued that poorer clients are often punished for loyalty, I’ll be to expensive standard variable rates. They are calling for price caps should come into place for prepaid meters in April for clients on these indicators.

Recently ofgem announced that the cap for those who pay their energy will cover more than 4m households, the decline in bills is estimated to be about 10-15% or £80 per year.

The Executive Board of citizens, Gillian guy, said: “the Prime Minister is right that the energy market is not working at all. More than 2 million low-income families and pensioners in the UK pay £141 more every year because they remain on standard variable rates of their provider”.

She said that prepayment meter, the price cap should reduce bills for millions when it comes into force in April. “Expanding cap for the standard variable tariff groups of consumers entitled to the discount in warm houses would be an important first step in protecting many of those who overpay for gas and electricity”.