Liberal Democrat Conference 2011: Chris Huhne Vows To Crack Down On High Energy Prices

Huhne

Huffington Post UK   Dina Rickman First Posted: 20/09/11 12:14 BST Updated: 20/11/11 10:12 GMT

Chris Huhne has vowed to get consumers "the best possible deal" after a wave of price rises from the big six energy companies.

In an upbeat keynote speech to a packed hall at the Liberal Democrat conference, Huhne said the government would "get tough" with energy companies and tackle fuel poverty.

"It’s not fair that big energy companies can push their prices up for the vast majority of their consumers – who do not switch – while introducing cut-throat offers for new customers that stop small firms entering the market. That looks to me like predatory pricing. It must and will stop."

And he said energy regulator Ofgem would crackdown on predatory pricing by energy firms. NPower boss Volker Beckers immeditately kicked back, saying energy policy was becoming a "political football".

Huhne highlighted the economic opportunities in the low carbon industry could help provide jobs, promising ". It is our route to recovery. Green business is good business."

The energy secretary laughed off his unpopularity with Conservatives, telling delegates: "It’s been nip and tuck between Vince and me in recent months to win an unpopularity poll – that’s on ConservativeHome among Tory activists.

"So as we assert Lib Dem values within government, we must be doing something right – or is it Left?"

And his digs at the Labour party's lack of action were applauded by delegates.

The former MEP also asserted the coalition's commitment to staying in the European Union, and trading with European countries.

"We will not, as Liberal Democrats in government, weaken the ties that deliver our national interest through Europe."

In a further swipe at right-wing Tory MPs he said "we need no Tea Party Tendency in Britain", instead highlighting the importance of cooperation between coalition partners.

"If you fail to compromise, if you fail to seek the common ground that unites us, if you insist that only you have the answers, if you keep beating the anti-European drum, if you slaver over tax cuts for the rich, then you will put in peril the most crucial achievement of this Government.

"You will wreck the nation’s economy and common purpose."

Delegates gave Huhne a standing ovation after the speech and consumer groups have welcomed the promised action on bills, with Richard Lloyd, executive director at Which?, saying the government action on bills was "overdue but welcome":

“With many people facing price hikes of 10% to 20% this winter, Government action on rocketing energy bills will be overdue but welcome. For the millions struggling in fuel poverty, help can’t come soon enough this winter.

“Giving people information on their bills about cheaper tariffs is a step towards helping people to manage spiralling energy costs. However, when 60% of domestic energy customers never switch, the Government and Ofgem must now take action to inject genuine competition into the energy market. Serious questions must be asked about whether the major suppliers’ customer bases will need to be broken up in order to achieve a competitive market.”

But Labour shadow energy secretary Meg Hillier said families could not be expected to take Huhne's speech seriously.

"Only last week Chris Huhne was criticising consumers for not switching supplier.

"He is tinkering while people face a cold winter shivering under blankets. His own plans to reform the energy market do nothing of the sort and will exclude many potential new entrants.

"Labour called for more competition in the market months ago and for a competition commission enquiry. Chris Huhne is fiddling with an already broken system. Labour is calling for radical reform.

"Chris Huhne's failure to take on the energy companies is yet another example of how this Tory-led Government is refusing to tackle the irresponsible behaviour at the top, while hard working families suffer."

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Chris Huhne has vowed to get consumers "the best possible deal" after a wave of price rises from the big six energy companies. In an upbeat keynote speech to a packed hall at the Liberal Democrat c...
Chris Huhne has vowed to get consumers "the best possible deal" after a wave of price rises from the big six energy companies. In an upbeat keynote speech to a packed hall at the Liberal Democrat c...
 
 
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FrancisKing
Unitarian Christian
07:08 PM on 09/20/2011
Chris Huhne is hopeless. First he puts up the bills with his crass wind turbine policy, and then he blames the energy companies. I've seen examples of the left hand not knowing what the right hand is doing, but never so blatantly before.
05:52 PM on 09/20/2011
Switching energy supplier is not like switching supermarket..........when you go into one supermarket you can see the price of baked beans....and make your choice of the cheapest, when switching energy supplier you don't know the cost of a unit because they have such a wide variety of pricing plans and units are charged differently.....

Who wants to keep changing supplier with all the rigmarole of setting up new Direct Debits and cancelling others?
lastpost
see biography
02:56 PM on 09/20/2011
"Huhne Vows To Get Tough"
I don’t know about tough Chris. But if you could just get a move on and try to keep up with the rest of us, that would be something. The Cooperative has already addressed this problem, by making themselves an agent for their customers. Hence their clients do not have to monitor the market, or continually switch suppliers. That is all done for them. What you could do, is prevent the energy companies forming a cartel. Which would serve to prevent real completion, and act to frustrate the buying power created to incentive efficiency savings.
02:17 PM on 09/20/2011
If we are to move towards a green consumption policy with energy providers, then we should have a sliding scale of charges which begins with a modest number of units at a low price. followed by some units at a slightly higher price and so on. This means that those who consume less, pay less per unit consumed.

Thus, there should be no standing charges which penalize low level users.

So, why all this talk about challenging energy companies so that we can change from one to the other. How does that help? Very few of us can understand what they are telling us. Their ways of charging are ridiculously complex.
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