Labour leader Ed Miliband has dismissed energy companies' explanations for rising bills as a 'list of excuses', insisting that a price freeze is necessary to tackle overcharging. Speaking after a committee hearing, Miliband rejected calls for a Competition Commission investigation, stating that 'nothing less than a price freeze' would suffice.
Miliband, whose proposal to freeze energy bills for 20 months if Labour wins the 2015 election has become a central political issue, argued that action is required rather than further reviews. 'We don't need more excuses, more reviews, what we need is action,' he said, adding that companies are 'overcharging people and taking advantage of a broken market'.
Energy firms appearing before the energy and climate change select committee on Tuesday attributed price rises partly to green taxes and rising wholesale costs. However, Ovo Energy managing director Stephen Fitzpatrick challenged this, stating that his company buys gas at a cheaper price than in 2009 and that some of the 'big six' are 'charging the maximum price they feel they can get away with'.
Fitzpatrick highlighted that loyal customers are charged up to £200 more than those who switch supplier, and accused Ofgem of failing to challenge such practices. He said effective competition is the only solution to lower bills, and criticised British Gas for running a 'win back team' to offer discounts only to departing customers.
E.ON chief executive Tony Cocker denied cross-subsidies between wholesale and retail arms, describing green levies as a 'stealth tax'. Miliband countered that green charges should offer value for money, but insisted that overcharging, not environmental costs, is the primary driver of bill increases. He concluded by vowing to stand up for hard-pressed families as prime minister.
