The energy companies can't avoid the blame for rising prices

While shifting the debate towards green levies, the Big Six have remained much quieter about their healthy profits.

They may be public enemy number one but you can't accuse the energy companies of being inept at public relations. Since their appearance in front of the energy select committee two weeks ago, the Big Six have successfully moved the conversation about energy bills away from their own profits and practices and on to so-called green levies. But by promising to "roll back" these charges, the Prime Minister is marching to their tune and failing to get the best deal for consumers.

Energy companies like to blame anyone but themselves for rising energy prices. In announcing their inflation-busting price rises, energy companies were quick to focus on wholesale gas prices and the levies on bills for low carbon energy and fuel poverty reduction.

They were much quieter about their own rising profits and operating costs. Energy firms make a healthy 5 or 6 per cent from their supply arms. They claim this is needed to make necessary investments but their own generation businesses report profits as high as 20 per cent.

Instead of scrutinising the acceptability of this level of profits in the energy supply industry, or questioning why operating costs appear to be spiralling upwards, the media have lapped up energy bosses describing green levies as a "stealth poll tax".

The only obfuscation, however, is by the energy companies themselves. New figures from Ofgem, released following a freedom of information request by IPPR, show that the two companies performing least well are those that have jacked up their energy prices the most. British Gas added £50 to consumers' bills for these charges but has delivered just 4, 6 and 9 per cent of its obligations. Scottish Power, by contrast, have delivered 24, 48 and 31 per cent and only raised green charges by £20.

If the money can be found, there is something to be said for moving green charges off energy bills and onto general taxation. That would make them more progressive. But a higher priority should be moving subsidies for low carbon generation off bills and onto taxation, because landowners and big companies are currently the big beneficiaries of this subsidy. Moving measures to improve fuel poverty should come second because these are at least partly progressive.

Regardless, the government now looks all but certain to do this at the oddly-named Autumn Statement on 5 December. If this is the case, it must ensure that this goes hand in hand with reform of its fuel poverty policy. The current policy is failing to get help to the intended recipients. As IPPR has shown, around 80 per cent of the policy budget, £434m of £540m, is being spent on homes that are not fuel poor. And 1.3 million fuel poor households are not eligible for any form or support.

Instead, we need a much more targeted approach to fuel poverty. The best approach is for local organisations to give out free assessments to work out who is fuel poor so that support reaches those who really need it. And to help everyone who is struggling with high energy bills, low interest loans for making energy efficiency improvements should be made widely available.

The EDF coal-fired plant, in Blenod-les-Pont-a-Mousson, eastern France. Photograph: Getty Images.

Will Straw was Director of Britain Stronger In Europe, the cross-party campaign to keep Britain in the European Union. 

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland