New questions for the big six mean Miliband's price freeze will continue to dominate

A new study by Ofgem shows that while consumers are paying up to 11.1% more, wholesale prices have risen by just 1.7% in the last year.

As even Conservatives now privately concede, Ed Miliband's pledge to freeze energy prices has had more political impact than any announcement since George Osborne's 2007 promise to cut inheritance tax. In the five weeks since the Labour conference, rarely a day has passed without it leading the debate. 

If the Tories are hoping to change the subject this week, they're likely to prove disappointed. On Tuesday, representatives of the big six will appear before the energy select committee to be questioned on price rises, and the day hasn't begun well for them. New data from the energy regulator Ofgem shows that while consumers have been hit by price increases of up to 11.1%, wholesale prices have risen by just 1.7% over the last year. It's a finding that will make it even harder for the firms to justify their inflation-busting price hikes. While the wholesale element of the average bill has risen from £600 to £610, Ofgem estimates that companies’ average net profit margin has more than doubled from £45 a household to £95.

The big six have responded this morning by disputing Ofgem's figures. A spokesman for British Gas said: "The prices that individual suppliers pay depend on their own hedging strategies, and the Ofgem methodology is, at best, an approximation of what those hedging profiles are. We buy a certain amount of gas more than two years in advance, and if you look at the 24 month figure to October 2013, there has been an 18 per cent increase in the wholesale cost." A spokesman for SSE said: "This is very much a global market and we are seeing increased international competition for supplies, which is putting up prices". But given the consistent lack of transparency shown by firms over how their profits are made, few will be willing to accept their excuses. 

For the coalition, the energy companies' kamikaze media strategy is a political headache. While it's likely that George Osborne will announce plans to reduce the green charges paid by consumers when he delivers his Autumn Statement on 4 December, the government still lacks a policy able to convince the public that it is on their side against the big six. A recent poll by Survation for the Mail on Sunday found that 75% do not believe that green measures are to blame for higher bills. Unless ministers are prepared to demonstrate how they will force companies to return some of their ill-gotten gains, it is alternative proposals, whether Miliband's price freeze or Major's windfall tax, that will continue to dominate. 

British Gas branding adorns the entrance to Leicester's Aylestone Road British Gas Centre. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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