Blog: Huhne has the power at his disposal

Tuesday 20th September 2011, 1:30PM BST.

Blog: Huhne has the power at his disposal

We can help you save on your energy bills.

It is a tantalising promise to customers looking to save some pennies. The big energy companies are falling over themselves to make all sorts of bewildering offers.

On the face of it, there is intense competition in the sector. And that must be good for the consumer. Right?

They will tell you the things which will make you liable to switch to them. But it is what they don’t tell you that is vital.

It is a point which has been made in his column by our own money savings expert, Martin Lewis, in recent weeks.

Consumers are being bamboozled by a flood of self-serving figures and projections.

It is all so complicated that to really know where you stand, and whether you stand to gain – which is, of course, the only real reason you would want to switch – you would have to spend hours on comparison websites trying to find a comprehensible path through the maze of information.

Life does not have to be complicated, but when it comes to energy bills, it is.

Those who do find it would be cheaper to switch may well find they are locked in with their present supplier.

Today energy secretary Chris Huhne pledged to sort things out. He wants to force companies to tell customers if they have a cheaper tariff on offer. He wants to make it easier and quicker to switch to other companies to get a better deal.

He wants more transparency about what those better deals will be.

All power to Chris Huhne’s elbow. But consumers have heard such fine talk before. Will Mr Huhne be able to make the energy firms themselves switch their ways?


  1. 1
    Jeffrey Borra

    Why not reverse Thatchers ideas to make a small percentage of the population rich and nationalise the utilities. After all they belonged to every one once then they were sold back to us. Bring them back under state control.

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  2. 2
    Rodney Nosnail

    1) Noticed how you cannot easily find a tariff without “standing charges” anymore? Even if you use ZERO electricity or gas, they’re going to wrestle the money out of your hands anyway. How does that reward those who cut consumption to save energy and CO2?

    2) In comparison sites, stop the “you can save £x a year” nonsense and display the cost per KWh or Unit. That way, you can compare the rate on your bill with other rates, rather than an “estimated” amount of fuel that you might or might not use in a year.

    Most energy sites I visit don’t make it easy to find out the unti price of their products – they know that it would open their savings claims to greater scrutiny.

    3) They tell you that they want you to be energy-efficient and that savings can be made if you cut down on use. But we all know that the more you cut down, the more they put up the price. Recent gas rises of 18% or so negate even a 20% saving on use that you made during the year. Nonsense. There comes a time when you cannot use any less than you already do.

    4) I’m regularly in Europe and their KWh and gas unit prices are lower than ours. One suspects that the German and French companies that control our energy industry are keeping their domestic markets happy with lower fuel charges at UK consumers’ expenses. They can do this because OFGEM is toothless and never acts on behalf of t5he consumer, preferring to believe the stories spouted out by the power companies as to why such huge increases are necessary.

    5) I PROPOSE: the creation of an “essential energy package”, calculated by cleverer minds than mine and legislate that the companies have to supply that amount of energy at that rate. For example, a typical essential may be a fridge, 10 minutes use of a kettle every day, 1 hours use of a cooker, 2 clothes washes a week, 10 low energy lightbulbs for 14 hours every day and a enough gas or electricity for 10 showers a week. Calculate the use and the power companies have to provide that amount of energy at a reduced rate and without the ridiculous 10 government “green” energy levy. Any more than that can be regarded as a luxury and treated as they do the whole lot at the moment. It may not be the essentials for everyone and more than essential for others, buy this would allow most lower-paid families to at least be sure that they would be warm, fed and clean all year at affordable cost – any excess used on TV, computer, outside lights, etc, falls outside the essential energy package and is thus charged at the higher rate.

    Yes, no doubt that Greens will bleat away about CO2 and global warming, but in my view, if that’s the important thing, then REWARD those who cut consumption rather than raise prices and re-introduce standing charges to punish them. And don’t impoverish society by denying them energy use through high profit tariffs on even essential use.

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  3. 3
    Rodney Nosnail

    Oh sorry, forgot to say in my first comment:

    6) If government and power companies are serious about saving energy and rewarding those who do (although we know they’re not), then in a 2 tariff system, charge the first amount of units or gas at the cheaper rate and raise the tariff after that minimum rather than the current system where fuel becomes cheaper if you use more.

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