Pass on fuel savings plea

We all hate paying so much for our essential energy needs. It’s not easy for any of us and at Unite we are only too aware of the many families who are having to choose between ‘heating and eating.’

But yesterday (January 8), as energy wholesale prices tumble, industry watchers have said that the Big Six UK providers, “could afford to slash gas bills by £107”.

It’s claimed the Big Six firms are punishing loyal customers as they refuse to cut standard tariffs while launching cheaper deals to bring in new business.

Wholesale gas prices have tumbled by 28 per cent since November 2013 when suppliers last slammed up energy prices. Wholesale costs account for around half the average gas bill and a third of the electricity bill.

Price comparison website Energyhelpline.com co-founder Mark Todd believes this means energy firms could knock 14 per cent off bills – equivalent to £107 a year for the average customer.

And as for electricity – Mr Todd believes suppliers can reduce electricity bills by five per cent – or £28 a year.

Anger

It has long been a source of anger that these energy giants offer enticing cheaper energy deals to bring in new customers – deals often only available on line – while loyal long-standing customers have to pay through the nose with no discounts available.

“Suppliers appear to be putting profits before their customers who are being punished for loyalty,” said Mr Todd.

His claim came as Labour blasted Chancellor George Osborne’s attempt to get energy firms to pass on savings – following the fall in oil prices, which yesterday fell below $50 a barrel.

“Over the last five years the government has shown that it will not stand up to the Big Six energy firms,” wrote shadow energy secretary Caroline Flint, in a letter to Mr Osborne.

She continued, “You have stood by while bills have soared and allowed energy companies to get away with raising prices when wholesale costs increase, but not passing on reductions in wholesale costs to consumers.

“We do not need another investigation – we already have one and we know what the problem is. We need action.”

But Energy UK, chief executive, Lawrence Slade believes there is a simple way to cut consumers’ energy costs. He said, “Energy suppliers are passing on price cuts to customers.

“When people shop around they can easily find deals that are over a hundred pounds cheaper than this time last year and in line with cuts in wholesale energy prices.”

But Unite assistant general secretary Steve Turner argued that urging customers to shop for better deals deflected responsibility from disingenuous energy companies.

“Greedy energy giants have long put their own interests first before even considering cutting costs to help their beleaguered customers,” said Turner. “People want a simple deal, the cheapest and automatically, not pathetic advice from the likes of Energy UK to simply advise customers to ‘get online and shop around for a cheaper deal’.”

“Even if you were computer literate, had access to the internet and the time to sift through pages of ‘offers’ many of them are simply not fully accessible to the people that need cheaper energy the most – the vulnerable, the elderly, families who have to choose between heating and eating,” he added.

“As for George Osborne he will never stand up for ordinary people against the energy firms,” Turner went on to say. “These fat cats have lined their pockets for too long. The wholesale costs of gas and electricity have fallen – pass the savings on to the customers now – it’s as simple as that.

“Back in the real world however, the reality is that this will never be available from private corporations protecting profits not people. It’s time to bring our energy back under public ownership”.