27 September 2011 Labour warns big six energy companies their stranglehold will be broken The Labour party is to put the UK's big six energy companies "on notice", pledging that the next Labour government will break up their "stranglehold" of the market in order to tackle soaring bills Meg Hillier, shadow secretary of state for energy and climate change, will tell the Labour party conference in Liverpool that soaring gas and electricity prices are a "great national scandal".
Labour will pledge to break up the existing market which allows the major energy companies to both generate and sell energy to households, which the party argues fails to minimise prices and prevents new companies entering the market.
"We will also insist that the [big six] make their prices and their bills crystal clear so we can all see the true cost of our energy," Hillier will say. She will signal Labour's readiness to make major interventions in the market, saying: "They may be private companies, but they should deliver a public service."
The move to break up the existing "vertically integrated" market goes far beyond the measures being taken by the government, although the Liberal Democrat energy secretary, Chris Huhne, promised last week to force more transparency in billing.
"We are going to make sure that no one is being ripped off by the energy companies and at the moment they are," said Labour MP Barry Gardiner, who sits on the energy and climate change select committee. "The government promised electricity market reform, but it is not delivering. It is tinkering at the edges." For the full news article and to be taken to the website, click here |