Ending the energy rip-off means breaking the big six deadlock

Nick Clegg’s direct mail initiative for cheaper tariffs is welcome, but only a complete rethink of t

There are few more demoralising sensations in life than the feeling of being ripped off. And when the product or service is something that you simply cannot live without, the sense of futility and frustration is all the more acute.

Public anger over skyrocketing consumer bills running parallel with the huge profits and executive bonuses of the Big Six energy companies – EDF, E.ON, British Gas, Southern, Scottish Power and npower – is growing.

The amount we pay for our power seems set on a never ending trajectory upwards. Average annual household bills for gas and electricity rose from £600 in 2004 to around £1,200 in 2011. USwitch has predicted that by 2020, this could rise to a massive £3,202.

For many people hit by the perfect storm of job losses, frozen wages and rising living costs, the situation is becoming desperate. As many as 6 million British households are now thought to be living in fuel poverty, with around 3,000 premature winter deaths attributed to the impact of living in damp, cold and leaky homes.

OFGEM and DECC figures show that the driving factor behind the price hikes has been the rising wholesale cost of gas and the fluctuating costs of other fossil fuels, underscoring the urgent need for a move towards renewable energy and ambitious energy efficiency.

But to add insult to injury, the Big Six actually appear to be increasing their profit margins on each bill. Last October, OFGEM warned that profits on dual fuel deals had increased by 733%, from £15 per household to £125.

Meanwhile, the Institute for Public Policy Research has found as many as 5.6 million people may be being overcharged as a result of Big Six pricing policies which also, it believes, prevent new companies from gaining a foothold in the market.

Indeed, despite OFGEM’s mandate to create a truly competitive energy market, nearly two decades after privatisation, the profiteering Big Six still control more than 99% of the retail market.  

To my mind, this is now about completely changing the behaviour of those operators and making it easier for new actors to enter the market. It is also about rethinking the way we produce energy in order to secure a more affordable and sustainable power supply.

So when the Deputy Prime Minister announced this week that he had struck a deal with the energy companies requiring them to send a once yearly letter to consumers with information about the cheapest tariffs, it felt like a monumental anti climax.

That’s not to say it isn’t a welcome development. Government proposals to simplify the confusing and complex range of tariffs which have often resulted in customers switching to a worse deal – and for customers to be offered the best tariff if their contract comes to an end – are well overdue, as are plans to give OFGEM powers to direct the energy companies to compensate overcharged consumers.

But reading this, I was struck by the fact that energy companies were not already obliged to do those things. With an estimated seven out of 10 people still not on the best available tariff, it seems the Big Six have been ripping customers off for far too long.

In February, I joined with Compass to help launch a campaign to End the Big Six Energy Fix – nearly 9,000 people have since signed the online petition calling for change.

We are appealing for an independent public inquiry into the energy industry, in the same way that that we had an Independent Commission on Banking led by Sir John Vickers and an investigation into the media by Lord Leveson, to get to the root causes of the problem.

In order to address the market failure and ensure that the energy companies pay a premium for their privileged market position, the campaign is also calling for a windfall levy on profits – with the money raised, together with revenues from environmental taxes, being channelled into energy efficiency programmes and demand reduction initiatives.

Because although the Government seems finally to be waking up to the potential of measures such as cavity wall insulation, loft lagging and condensing boilers, the Green Deal policies that are supposed to make these happen are weak and underfunded. Serious initiatives to reduce overall energy demand are still worryingly thin on the ground.

Furthermore, rather than tinkering around the edges with mail outs and barcodes on bills, we should be making it easy for communities and councils up and down the UK to generate their own energy – reducing consumer dependence on the Big Six.

The forthcoming Electricity Market Reform, albeit deeply flawed and overly complex, should in theory make it easier for smaller operators to enter the energy market. But this is far from certain, and the current proposals largely ignore the vast potential of community energy.

The Government should be doing far more to localise and decentralise the sector, drawing from best practice in countries like Germany where community ownership of the grid has played a pivotal role in allowing renewables and energy efficiency to flourish.

Here in Britain, where the grid is privately owned and controlled, people are far removed from energy generation and have little knowledge of where our energy comes from. Yet in Germany, citizens see themselves more as owners and generators of their energy, not just consumers.

With the right political will and ambition, we can create an energy sector which genuinely serves the interests of the people and protects the planet. But only by curbing the power of the Big Six, increasing transparency around bills, and investing in renewables, efficiency measures and demand management that will ultimately help wean us off fossil fuel addiction, can this become a reality.

Caroline Lucas is MP for Brighton Pavilion and Co-Chair of the All Party Parliamentary Group on Fuel Poverty

Energy: the rising costs, Getty images.

Caroline Lucas is the MP for Brighton Pavilion.

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Anxiety is not cool, funny or fashionable

A charitable initative to encourage sufferers to knit a Christmas jumper signalling their condition is well-intentioned but way off the mark.

The other night, I had one of those teeth-falling-out dreams. I dreamt I was on a bus, and every time it stopped one of my teeth plunked effortlessly out of my skull. “Shit,” I said to myself, in the dream, “this is like one of those teeth-falling out dreams”. Because – without getting too Inception – even in its midst, I realised this style of anxiety dream is a huge cliché.

Were my subconscious a little more creative, maybe it would’ve concocted a situation where I was on a bus (sure, bus, why not?), feeling anxious (because I nearly always feel anxious) and I’m wearing a jumper with the word “ANXIOUS” scrawled across my tits, so I can no longer hyperventilate – in private — about having made a bad impression with the woman who just served me in Tesco. What if, in this jumper, those same men who tell women to “smile, love” start telling me to relax. What if I have to start explaining panic attacks, mid-panic attack? Thanks to mental health charity Anxiety UK, this more original take on the classic teeth-falling-out dream could become a reality. Last week, they introduced an awareness-raising Christmas “anxiety” jumper.

It’s difficult to slate anyone for doing something as objectively important as tackling the stigma around mental health problems. Then again, right now, I’m struggling to think of anything more anxiety-inducing than wearing any item of clothing that advertises my anxiety. Although I’m fully prepared to accept that I’m just not badass enough to wear such a thing. As someone whose personal style is “background lesbian”, the only words I want anywhere near my chest are “north” and “face”.  

It should probably be acknowledged that the anxiety jumper isn’t actually being sold ready to wear, but as a knitting pattern. The idea being that you make your own anxiety jumper, in whichever colours you find least/most stressful. I’m not going to go on about feeling “excluded” – as a non-knitter – from this campaign. At the same time, the “anxiety jumper” demographic is almost definitely twee middle class millennials who can/will knit.

Photo: Anxiety UK

Unintentionally, I’m sure, a jumper embellished with the word “anxious” touts an utterly debilitating condition as a trend. Much like, actually, the “anxiety club” jumper that was unanimously deemed awful earlier this year. Granted, the original anxiety jumper — we now live in a world with at least two anxiety jumpers — wasn’t charitable or ostensibly well intentioned. It had a rainbow on it. Which was either an astute, ironic comment on how un-rainbow-like  anxiety is or, more likely, a poorly judged non sequitur farted into existence by a bored designer. Maybe the same one who thought up the Urban Outfitters “depression” t-shirt of 2014.

From Zayn Malik to Oprah Winfrey, a growing number of celebrities are opening up about what may seem, to someone who has never struggled with anxiety, like the trendiest disorder of the decade. Anxiety, of course, isn’t trendy; it’s just incredibly common. As someone constantly reassured by the fact that, yes, millions of other people have (real life) panic meltdowns on public transport, I could hardly argue that we shouldn’t be discussing our personal experiences of anxiety. But you have to ask whether anyone would be comfortable wearing a jumper that said “schizophrenic” or “bulimic”. Anxiety, it has to be said, has a tendency – as one of the more “socially acceptable” mental illnesses — to steal the limelight.

But I hope we carry on talking anxiety. I’m not sure Movember actually gets us talking about prostates, but it puts them out there at least. If Christmas jumpers can do the same for the range of mental health issues under the “anxiety” umbrella, then move over, Rudolph.

Eleanor Margolis is a freelance journalist, whose "Lez Miserable" column appears weekly on the New Statesman website.