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Simon Hughes MPRepresenting Southwark and Bermondsey since 1983 |
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Energy firms should publish their profits on fuel bills - Hughes
February 24, 2010 1:19 PM
Energy firms would have to print the amount of profit they make on every fuel bill under an amendment to the Energy Bill tabled by the Liberal Democrats to be debated by MPs today.
The amendment is one of a series of proposals tabled by the Liberal Democrats to improve consumer rights.
Energy firms would be prevented from exercising a veto over regulatory changes to their operating licences under a further amendment to be debated as the Bill reaches the end of its passage in the House of Commons.
Commenting ahead of the debate, Liberal Democrat Shadow Energy and Climate Change Secretary, Simon Hughes said:
"Customers should have a right to know how much of the bills they pay end up in energy firms' coffers.
"Both Labour and the Tories talk a lot about the need for people to make informed choices. Today is a chance to show they mean it.
"It's unacceptable that energy giants have so much control over the body supposed to police them.
"These simple steps would lead to fairer fuel bills through greater transparency and much-needed regulation."
Notes:
1. The full text of the amendments to be debated is below:
22. Information on the profits of energy companies on energy bills
To move the following Clause: -
'The Secretary of State may modify -
(a) a condition of the license of section 11A of the Electricity Act 1989 (transmission of licenses and supply licenses) to make provision on energy bills for information about the profits of electricity suppliers;
(b) a condition of the license of section 23 (1) (b) of the Gas Act 1986 (transmission licences and supply licenses) to make provision on energy bills for information about the profits of gas suppliers; and
(c) the standard conditions incorporated in the licenses under those provisions by virtue of those acts.'
18. Alterations to the threshold for upholding objections to modifications of the standard conditions of electricity licences
To move the following Clause: -
'(1) The Electricity Act 1989 is amended as follows.
(2) Omit section 11A(6)(b) and insert -
"(b) if one or more relevant licence holders give notice of objection to the Authority within that time -
(i) the proportion (expressed as a percentage) of the relevant licence holders, calculated in accordance with subsection (7A), who have given notice of objection is less than the percentage set out in subsection (7B); and
(ii) the percentage given by subsection (7) is less than the percentage set out in subsection (7B); or
(3) After section 11A(7) insert -
"(7A) Where more than one relevant licence holder is in common ownership, these shall be collectively considered to be a single relevant licence holder for the purpose of calculating the percentage.
(7B) The percentage shall be the higher of 50% or such other figure as may be prescribed by the Secretary of State."
21. Alterations to the threshold for upholding objections to modifications of the standard conditions of gas licences
To move the following Clause: -
'(1) The Gas Act 1986 is amended as follows.
(2) Omit section 23(7)(b) and insert -
"(b) if one or more relevant licence holders give notice of objection to the Authority within that time -
(i) the proportion (expressed as a percentage) of the relevant licence holders, calculated in accordance with subsection (8A), who have given notice of objection is less than the percentage set out in subsection (8B); and
(ii) the percentage given by subsection (8) is less than such percentage set out in subsection (8B); or
(3) After section 23(8) insert -
"(8A) Where more than one relevant licence holder is in common ownership, these shall be collectively considered to be a single relevant licence holder for the purpose of calculating the percentage.
(8B) The percentage shall be the higher of 50% or such other figure as may be prescribed by the Secretary of State."
2. The Government is due to accept Liberal Democrat proposals to make energy firms inform customers before they change their prices in the form of their own amendment to the Bill.