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OFGEM MOVES A STEP IN THE RIGHT DIRECTION - WILLIAMS
December 16, 2008 11:55 AM
Speaking after Ofgem announced that they expected £500 million to be cut from excessive energy bills, Liberal Democrat Shadow Secretary of State for Wales Roger Williams MP has welcomed the news but warned there was a long way still to go.
Ofgem said that £300 million had already been taken off bills, and that they expected further reductions of £200 million. The reductions include cuts to bills for pre-payment meters. However, Ofgem Chief Executive Alistair Buchanan has warned companies that they wanted "more and quicker action for those customers currently losing out" and left the option of making a referral to the Competition Commission open.
The £200 million would cut the bills of those who have to pay more because they are not on the mains gas network. Rural areas, particularly in Wales are likely to benefit as they have a disproportionate number of households that are not connected to the mains gas network.
Earlier this year it emerged that Welsh consumers were paying 18% more than customers in England.
Commenting, Roger Williams said:
"I am pleased that Ofgem have had some success in reducing bills, but as the Chief Executive has said, more needs to be done to help our poorest and most vulnerable consumers pay their fuel bills.
"Ofgem have rightly identified the disparity between rural and urban areas and if they can secure action then that will be welcome news for Wales, where there are disproportionate numbers of people who are not connected to the mains gas network.
"Those on heating oil and LPG still need our help, and we will be continuing to campaign for a better deal for those people.
"While it is welcome that some of the unfair practices that have been operated by energy companies now look set to be stopped, we need to ask what action will be taken against the companies that have made millions from charges that have now been ruled unfair.
"In the broader scheme of things it is also essential that energy bills drop in line with the drop in the cost of wholesale gas. Energy companies must pass on the reductions in full, and give people in Wales the affordable bills they need."
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