Dudley MP Ian Austin is backing a campaign by Citizens Advice’s to tackle the excess profits energy companies are making at the expense of hard working families in the Black Country.
Statistics obtained by Citizens Advice show that energy companies are making excess profits of £305 per household in the West Midlands – the third highest in the country.
Under the current price control, energy networks are set to make £7.5 billion in excess profits. As there are only one set of pipes and wires supplying energy to households there is a lack of competition to get lower prices.
With the regulator Ofgem currently consulting on the next price control Ian Austin is backing five pledges from Citizens Advice to make sure consumers aren’t left out of pocket.
Ian Austin said:
“Lots of families in the Black Country are struggling to make ends meet. Wages here are below the national average and bills keep going up, with energy bills rocketing in recent years.
“Citizens advice help 4,000 energy consumers per day with their bills – over the winter there were many stories about people having to choose between eating and heating.
“It’s terrible that families are paying an average of £350 straight on to the profits of energy companies.
“That’s why I am backing this campaign to make sure hard working people in the Black Country aren’t footing the bill for these energy companies.”
Citizens Advice pledges:
1. Profits are lower than the previous price control, to more accurately reflect the relative low risk for investors in this sector.
2. The value of any unspent funding for infrastructure projects is returned to consumers promptly and in full.
3. Industry business plans and regulatory decisions are directly informed by consumer (including future consumer) feedback and research.
4. Companies are required to publish complete information on their performance, financial structures, gearing and ownership.
5. Innovation funding and incentives support consumers in the transition to a low-carbon future, particularly those consumers in vulnerable circumstances.
Regional profit statistics: https://drive.google.com/file/d/1LbI45KmS1cPNG3BYQe1zOOK_cXsAr9LL/view
Citizens Advice Regional Update: https://drive.google.com/file/d/1vxvYXlqVsNHDavKPK2vzdBF-rVeeit05/view