MP calls on regulator to stop ‘obscene’ energy price rises
Originally published by Tim Farron
South Lakes MP Tim Farron has today written to energy regulator OFGEM asking them to step in and stop other companies following the lead of Scottish Power who yesterday said bill would rise by a colossal 19%
Yesterday Scottish Power announced it is to raise the price of domestic gas and electricity bills by 19% and 10% respectively from August 2011, they blame the increases on a rise in wholesale energy costs and the volatility in the global energy markets.
The rise, which will affect 2.4m households many of them of them in our area and add £175 a year - or 48p a day - to the average dual fuel customer's bill. They were the first of the 'Big Six' gas and energy companies to announce their new prices with many city analysts expecting now all the other companies to follow suit.
In 2010 British Gas said operating profits had risen by 24% in 2010 to £742m. In November 2010, Ofgem said that energy supplier's net profit margin per typical customer rose from £65 in September to £90 in November, a 38% rise.
Commenting today Tim said: "I have written to the regulator today asking them to step in and show that they have the consumer's best interests at heart. I don't want people in the South Lakes choosing between heating and eating. If they do not curb these excessive price rises from the energy companies and I will press the government to act instead. People in our area need action and this is my warning shot across the bows to energy companies. It is time to shape up and stop taking consumers for a ride."