End energy giants' stranglehold over customers - or condemn
millions to fuel misery
13 November 2008
The UK energy market has failed
consumers and is causing rampant fuel poverty and fear as winter
draws in. According to Unite, the UK's biggest union, which has
been leading the call for a windfall tax to ease consumer price
pain, only a total overhaul of the energy market's operations will
prevent the continued exploitation of millions of fuel
consumers.
Unite's call for urgent intervention in the UK fuel market,
combining Government-led profit redistribution and tough regulatory
action, is set out in the union's submission to Ofgem's
consultation on the energy market. Ofgem's review into the energy
market's structure concludes today, Thursday.
According to Tony Woodley, joint general secretary of Unite,
"millions of UK households are now classified as fuel poor. To have
ordinary people wrestle with whether to heat their homes or feed
their families is inhumane, not to mention a shocking indictment of
both the world's fourth richest economy and the regulator's failure
to put consumers before greedy companies.
"Galloping price rises and light touch regulation have hit
hard-pressed consumers with a double-whammy - they are forced to
pay sky high prices for an essential commodity but have a toothless
regulator that fails to bite back in their favour.
"This abusive strangehold must be broken. Price-capping and
price cuts must be put in place to stop bills soaring ever higher,
Ofgem must make use of its powers to guard against market abuse,
and there must be an immediate windfall tax on the astronomical
profits pocketed by the oil and energy companies in recent times so
that the pain of fuel price hikes can be eased and bills can be
paid.
"Urgent redistribution of windfall profits would put £250 into
the pockets of six million needy homes this winter but this can
only be the first step on the road to restructuring our broken
energy market and ending the exploitation of customers
everywhere."
Unite has been pressing for a 'modest' windfall tax on the oil
and utility companies, a call reiterated in October when BP and
Shell once again reported massive profits. Unite's serious concerns
over the operation of the UK energy supply market and its impact on
fuel consumers are set out in its submission to the Office of Gas
and Electricity Markets' (Ofgem) energy supply probe
consultation.
ENDS
For further information contact Pauline Doyle on 07976 832
861
Copies of the Unite Ofgem submission can be obtained by emailing
pauline.doyle@unitetheunion.org
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