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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What David Hockney has to tell us about football

Why the sudden glut of blond footballers? A conversation I had with the artist back in 1966 gave me a clue. . .

In 1966, I went to interview David Hockney at a rather run-down flat in Bayswater, central London. He was 28 and had just won a gold medal at the Royal College of Art.

In his lavatory, I noticed a cut-out photograph from a newspaper of Denis Law scoring a goal. I asked if he was a football fan. He said no, he just liked Denis Law’s thighs.

The sub-editors cut that remark out of the story, to save any gossip or legal problems. In 1966 homosexual activity could still be an offence.

Hockney and a friend had recently been in the United States and had been watching an advert on TV that said “Blondes have more fun”. At two o’clock in the morning, slightly drunk, they both went out, bought some hair dye and became blond. Hockney decided to remain blond from then on, though he has naturally dark hair.

Is it true that blonds have more fun? Lionel Messi presumably thinks so, otherwise why has he greeted this brand-new season with that weird blond hair? We look at his face, his figure, his posture and we know it’s him – then we blink, thinking what the heck, does he realise some joker has been pouring stuff on his head?

He has always been such a staid, old-fashioned-looking lad, never messing around with his hair till now. Neymar, beside him, has gone even blonder, but somehow we expect it of him. He had foony hair even before he left Brazil.

Over here, blonds are popping up all over the shop. Most teams now have a born-again blondie. It must take a fortune for Marouane Fellaini of Man United to brighten up his hair, as he has so much. But it’s already fading. Cheapskate.

Mesut Özil of Arsenal held back, not going the full head, just bits of it, which I suspect is a clue to his wavering, hesitant personality. His colleague Aaron Ramsey has almost the full blond monty. Paul Pogba of Man United has a sort of blond streak, more like a marker pen than a makeover. His colleague Phil Jones has appeared blond, but he seems to have disappeared from the team sheet. Samir Nasri of Man City went startlingly blond, but is on loan to Seville, so we’re not able to enjoy his locks. And Didier Ndong of Sunderland is a striking blond, thanks to gallons of bleach.

Remember the Romanians in the 1998 World Cup? They suddenly appeared blond, every one of them. God, that was brilliant. One of my all-time best World Cup moments, and I was at Wembley in 1966.

So, why do they do it? Well, Hockney was right, in a sense. Not to have more fun – meaning more sex – because top footballers are more than well supplied, but because their normal working lives are on the whole devoid of fun.

They can’t stuff their faces with fast food, drink themselves stupid, stay up all night, take a few silly pills – which is what many of our healthy 25-year-old lads consider a reasonably fun evening. Nor can they spend all their millions on fun hols, such as skiing in the winter, a safari in the spring, or hang-gliding at the weekend. Prem players have to be so boringly sensible these days, or their foreign managers will be screaming at them in their funny foreign accents.

While not on the pitch, or training, which takes up only a few hours a day, the boredom is appalling, endlessly on planes or coaches or in some hotel that could be anywhere.

The only bright spot in the long days is to look in the mirror and think: “Hmm, I wonder what highlights would look like? I’ve done the beard and the tattoos. Now let’s go for blond. Wow, gorgeous.”

They influence each other, being simple souls, so when one dyes his hair, depending on where he is in the macho pecking order, others follow. They put in the day by looking at themselves. Harmless fun. Bless ’em.

But I expect all the faux blonds to have gone by Christmas. Along with Mourinho. I said that to myself the moment he arrived in Manchester, smirking away. Pep will see him off. OK then, let’s say Easter at the latest . . . 

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 22 September 2016 issue of the New Statesman, The New Times