21 Sep 2010

Government to stop ‘outrageous’ energy price hikes

The Energy Minister Chris Huhne says he’ll step in if energy providers continue to impose “outrageous” price hikes on customers, and promises Britain’s ‘Green Revolution’ will be a ‘beacon to others.’

energy prices

Addressing the Liberal Democrat party conference, Energy Secretary Chris Huhne put the environment at the heart of the party’s agenda, telling delegates: “Being the greenest government ever is not just an ambition, but a global necessity. So yes to cutting the deficit. But also yes to cutting carbon emissions.”

The notion of a Green Deal revolution was hammered home, billed as the “first scheme of its kind in the world,” Mr Huhne offered the prospect of improved insulation in 26 million homes, to save energy and money. The changes, he predicted, would spawn an industry creating 250,000 new jobs across the country.

The energy saving theme continued as the minister tackled the topical issue of gas and electricity provision. Declaring it “outrageous” that energy companies have been able to put up prices without even bothering to tell their customers, he pledged to use his “ministerial powers” to intervene if energy companies don’t give notice when they hike their prices. He also called for more detailed energy bills, giving consumers more information on the best deals to increase competition and drive prices down.

His warning to energy firms follows regulator Ofgem’s launch of a consultation into changing elements of the rules over energy prices. At the moment, customers can be notified of price alterations up to 65 days after they have already been imposed.

Huhne's "4 towering tasks:"
- to rebalance and rebuild our distorted economy
- to reform our rotten politics
- to heal our selfish society, and
- to protect our imperilled planet

Electric revolution
But at the same time Mr Huhne also talked of weaning the country off oil and gas in favour of electrical power -invoking visions of eras gone by: “as profound as moving to steam, iron and coal in the first industrial revolution. Or to steel, petrol and gas in the second. In Britain, in this third industrial revolution, we will build a new economy of low carbon and clean growth. As we have done before, we will show the world the way.”

But despite the stirring imagery there was obvious concern over the funding for such projects and an acknowledgement that George Osborne, the man who is ultimately in charge of the purse strings, is a Conservative, funding a Liberal Democrat pledge.

Low carbon economy
The Energy Minister lamented Britain’s position at the bottom of the European table of renewable energy use, stating a commitment to both renewable and nuclear energy to ensure “low carbon energy and security of supply,” in the long term.

“The days of dirty fossil fuels is over” he told the conference. “Our low-carbon policy will insure consumers, and businesses against the oil price shocks to come.”

“Britain can’t tackle global climate change by itself,” he continued; “But we can build a successful and prosperous low carbon economy that will shine as a beacon to others”

"By 2015, the economy will be recovering. The gloom will be lifting. And our achievements will speak for themselves. Restored freedoms. Fairer taxes. An elected Lords. Fixed term parliaments. The world’s biggest programme of energy saving. A renewable renaissance without parallel in Europe. A new green economy."

Chris Huhne, Liberal Democrat conference 2010

The future

Mr Huhne claimed support for his green agenda from Nick Clegg, the Liberal Democrat leader and Prime Minister David Cameron, declaring: “This government will not just hope to be the greenest ever. We will deliver.”

But he ended his speech by championing his party as an independent one with a proud tradition and “an ability without parallel to generate new ideas.” No-one can “vote coalition” at the next election, he told supporters. “We’ve been crying in the wilderness too long… our time has come to fight for our party, our values and our country.”

The Liberal Democrat conference continued today without the party leader Nick Clegg, who reassured activists yesterday that the coalition government was the “right government for right now”.

Mr Clegg will be representing Britain at the United Nations in New York.