Energy Secretary Chris Huhne calls today’s energy summit with power companies and consumer groups “encouraging”, and tells householders to shop around for the best deal from suppliers.
After the meeting, Mr Huhne said households struggling to pay rising fuel bills should change supplier, check their tariffs, or insulate their homes to try to save money. And he denied suggestions that without an actual fuel price cut, the outcome of today’s “summit” would do little to help fuel consumers.
David Cameron said before today’s meeting at the Department for Business, Innovation and Skills with representatives of the “big six” power firms, that consumer groups, and regulator Ofgem would discuss how to create a “trusted, simple and transparent” market.
The summit considered how better to inform consumers about the potential savings they could make from checking they are on the cheapest energy deal, switching supplier, or taking advantage of subsidised insulation.
In a joint article with Liberal Democrat Energy Secretary Chris Huhne on the moneysavingexpert.com website, David Cameron wrote: “Energy bills have increased by more than £100 for most people since this summer.
“These price rises couldn’t come at a worse time for consumers who are already feeling the pinch from rising petrol prices and the cost of the weekly shop.”
Fed up with rising fuel bills? Channel 4 News explains how you could save up to £400 a year
Mr Huhne said people could save several hundred pounds on their bills by switching their energy tarif or even their provider. He told the BBC: “At the moment we’ve had some very big increases in electricity and gas prices, principally because of the very sharp increases in prices on the world markets.
“But consumers are not powerless. They can save up to £200 by switching, and that’s absolutely key to try and help them make the market more competitive, because the best guarantee that you’re getting value for money is to have more people bidding for your business.”
Warm words won’t heat homes during a bitter winter. Shadow Energy Secretary Caroline Flint
Meanwhile, Mr Cameron said he wanted to focus on “getting people the help they need to reduce their bills in time for this winter”.
“Our intention is for today’s summit to be the start of a much more active engagement with consumers, with us all working harder and faster to deliver an energy market that is trusted, simple and transparent,” he added.
“A market that puts the consumer first and gets these energy bills down as much as possible.
“We are determined that everything that can be done will be done to help people bring their energy bills down.”
The coalition wants to seize the initiative on energy bills after Labour leader Ed Miliband attacked the “rigged” market in Britain. Power firm SSE seemingly heeded his call last week by announcing its power would be sold on the open market – rather than going straight to its own supply arm.
Experts estimate the move could bring significant savings for customers if the other five major players in the industry followed suit.
There was also an angry reaction last week when it emerged that firms’ profit on the average household energy bill had soared from £15 a year to £125 in a matter of months.
But Shadow Energy Secretary Caroline Flint insisted: “The government’s warm words won’t heat homes during a bitter winter.
“They’re unable to take on vested interests, they won’t tackle the spiralling prices imposed by the energy giants, they won’t investigate the mis-selling of energy and they won’t help the pensioners whose winter fuel payments have been cut.
“Unless the out-of-touch government gets to grips with the real issues at the energy summit, their only promise is a cold, costly winter for all.”