A summit is taking place today on the rising cost of energy in the UK.
The prime minister, David Cameron, and the energy secretary, Chris Huhne, will be meeting with consumer and energy groups this afternoon to discuss a resolution to rising energy prices and the hardship they are causing in Britain. Representatives from the industry regulator, Ofgem, will also attend.
Several fuel companies have reacted in advance of the summit, promising that prices will be fixed over the winter. Npower and Scottish Power only pledged to fix some of their prices, leaving the rest open to increases.
Scottish Power will be proactively contacting customers who pay by cash or cheque to ask them if they would like to switch to direct debit, which is usually cheaper. British Gas will introduce new price checking features on their website and will extend their offer to provide free wall or loft insulation to certain customers.
Consumer groups feel that the price promises from the big energy companies are too little too late, as some have already raised their prices substantially in 2011. A recent report from Ofgem suggests that energy companies are now making £125 per year in profits per customer, compared to £15 a few years ago.
In a statement to the MoneySavingExpert website, David Cameron and Chris Huhne said that the government would be pushing for simpler tariffs to encourage more people to switch suppliers, and grants would be made available for household insulation. There will also be winter fuel payments to pensioners.
The idea of simpler tarrifs, with the abolition of the complex ‘first unit charge’ method of billing, has been announced by Ofgem already.
Martin Lewis, spokesman for the website, said: “The Prime Minister needs to deliver as millions face desperate annual energy bills of about £1,300 a year.”
Energy companies have recently ceased to use doorstep salespeople in order to sell gas and electricity tariffs after consumer groups voiced concerns that the best prices were rarely offered