I know many people at the moment are worried about domestic fuel costs, particularly with winter approaching. That’s why I recently held an Energy Advice workshop in conjunction with Birmingham Citizen Advice Bureau.
I was joined by Birmingham Citizen’s Advice Bureau’s chief executive, Yvonne Davis, and a specialist debt advisor, Flo Betts, who explained the variety of support available to people who are experiencing problems paying their fuel bills, as well as advice on switching companies to save money.
Citizen’s Advice Bureau run a number of offices throughout the city, as well as telephone lines, offering advice on a range of issues including financial help. I think it’s really important that people are taking advantage of the help that is available to them.
I have also written to the Chancellor of the Exchequer and BERR (Business Enterprise and Regulatory Reform) Secretary, John Hutton about the recent calls for a windfall tax on energy companies. I think that it’s a mistake to call for a tax across the board however attractive it might appear. If we are not careful we may discourage domestic oil exploration, gas storage and green energy measures which are the very things we need to reduce costs and safeguard domestic energy supply in the future.

I have asked the Chancellor of the Exchequer and Secretary Hutton to initiate an investigation into the profits which Energy Supply companies have derived from higher consumer charges. Energy companies should have nothing to fear from such an investigation if their profits are genuinely earned and about new investment. There should be plenty of evidence which can be independently verified.

What sticks in peoples’ throats are energy supply companies making huge profits from price increases levied against consumers and then using the money to give excessive increases and bonus payments to their directors.

I am wary of those who think that just taxing energy companies is an easy answer to rising energy costs.  I know that most rational people accept the need for fair profits but these had to be earned and fair profits needed to be accompanied by fair bills for the consumer.

I know that it’s not just those on benefits who experience the shock in the price of fuel, its also those pensioners just above the pension credit threshold and those hard working men and women on low wages who get up early every morning and work hard everyday in order to keep their families and their home together. The government and the energy supply companies have a real responsibility to these people and need to take that into account when considering any new initiatives.