Energy Consumers Are Not Cash Cows Says Ed Davey
By Anne Lewis-Schneider
Ed Davey the energy secretary has warned that energy companies face the same fate as that plagued banks in the not too distant past. This as the row over increasing energy bills intensifies and the energy companies state that playing the blame game is not getting anywhere. The Big Six energy companies have been accused of putting shareholders ahead of the needs of their customers, and this is not bringing resolution to the ever increasing fuel bill prices.
The arguments that have erupted over price increases is not going to build much needed sources of energy such as power stations for the future requirements of UK energy generation when older power stations are decommissioned in accordance with the EU agreement to increase low carbon emission energy supplies. EDF are the fifth company in the Big Six to announce price increases coming in at a low 3.9% in comparison to other increases already announced. SSE and nPower have stated that they are not failing their customers with their increases, as they justify these to green levies and increasing costs of service delivery. They maintain that they are not being unfair to their more than 16 million strong consumer base.
The energy companies have reiterated their concern for their customers, and will to help those who are struggling with the costs of household bills, at the same time defending their price hikes, the latest of which comes from EDF who will put their prices up by 3.9% come January next year. Angela Knight of Energy UK has said that there would appear to be a lack of trust between suppliers and consumers as far as energy is concerned. She added that trust is hard won and easily lost. She said that energy increases had been necessary for a number of reasons that had already been explained adequately to the consumer, and had been made clear. Energy UK has remarked that the energy business is of great import to the UK and is also a taxpayer, a massive employer and a large investor. It is believed that 95% of the escalating costs of energy are out of the hands of energy companies.
The energy companies need to make a profit to be able to invest in much needed infrastructure for the future provision of low carbon energy sources into the future, but, according to Ed Davey, these should not come at the expense of those who are vulnerable and cannot afford it.
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