Energy UK boss claims power suppliers do more to help poorer customers, and that price rises are beyond their control
Britain's biggest energy companies are more socially responsible than supermarkets in their treatment of cash-strapped customers, according to the industry's trade body.
Energy UK said the help offered by its members to pensioners and low-income households was the equivalent of giving shoppers £135 per year. "If you are food-poor, there is no responsibility on supermarkets to give £130 towards your shop, but the energy companies will give a discount, and there is assistance available if your home is badly insulated," said Angela Knight, the chief executive of Energy UK.
Knight spoke amid warnings from campaigners that some households are being forced to "heat or eat" following the announcement of energy price rises of between 8% and 10% by the largest energy firms.
Gas and electricity prices have increased by four times the rate of inflation over the past 10 years, according to analysis by the TUC. Energy costs rose by 152% from September 2003 to September 2013, compared with the RPI rate of inflation of 38% over the same period, and a 43% increase in the cost of food.
Speaking at an event to promote a helpline offering vulnerable consumers advice on a range of assistance schemes, and the day after energy bosses appeared before MPs to explain the recent round of increases, Knight said rising prices were "outside the ability of energy companies to fix … There are other costs such as the levies and wholesale gas prices that are rising."
However, suppliers are under pressure to justify price rises after the regulator Ofgem showed that network costs have risen by just £15 since last year, wholesale costs by £10 and green costs by £10. And they are set to come under more scrutiny from the energy secretary, Ed Davey, who is expected to announce an annual competition review of the industry on Thursday. This review is likely to be conducted by Ofgem, the Office of Fair Trading and the new Competition and Markets Authority, the body that will succeed the current competition commission.
At the Home Heat Helpline launch, it was announced that more than £300m has been provided by energy companies this year to fund the Warm Homes Discount, which is primarily available to pensioners receiving pensions credit.
However, Mervyn Kohler, of the charity Age UK, said the money available to help vulnerable people was nowhere near enough: "There needs to be a more coherent programme with proper energy-efficient improvements in people's homes. Year after year the financial help available is discussed, but the only sensible strategy is a vigorous thermal efficiency drive to improve the efficiency of our old housing stock, as we haven't got this with ECO and the green deal."
As a former chief executive of the British Bankers' Association, Knight has experience of defending large organisations making vast profits. At the BBA she defended bankers' pay by saying it was a world market and high wages had to be offered to attract the best.
NPower, British Gas, SSE and Scottish Power have all said they will increase electricity and gas prices by between 8% and 10.4%. E.ON and EDF are the only members of the big six that have not followed suit. The increases will take the cost of an average dual-fuel bill to more than £1,400 a year.
No comments:
Post a Comment