COLD COMFORT

The Ofgem, the UK energy regulator’s warning to energy supply companies that households must benefit from a fall in wholesale gas prices, will bring cold comfort to those families who may be forced to make a choice between putting food on the table for their family and heating their home, this winter.

That aside, I welcome the fact that the energy companies will face a further investigation into their retail prices which will be launched in the New Year, and the fact that the energy regulator says it ‘will not shy away from proposing radical reform to protect the interests of consumers’ – this is especially welcome as it has been revealed that energy company profit margins in dual fuel bills stand at a five year high and that they may rise further.

Ofgem has said that if wholesale gas prices continue to fall, then bills must come down in the New Year to avoid the customer losing out. The regulator has also said that companies must not "use investment as a shameful excuse to overcharge their consumers.

In truth what we have is not a virtual monopoly on energy supply in the UK, but an actual monopoly, as the number of energy supply companies has fallen to six in the last ten years, with less that £30 differential between all of the energy supply companies, which works out to be no more than a few pence a week difference in bills, and what we have an energy cartel which brings minimal benefit to hard pressed energy customers.

Now Energy companies have always been very quick to blame rising oil and gas prices, and equally quick to rake in the profits and the Government has been equally happy to rake in the extra tax revenues – the only loser in this happy picture is us, the energy customers.

This situation has arisen of a culture that rewards short-term financial recklessness in the city of London, which had promoted a vast increase in cheap credit on the back of an absurd house price boom – that is how we have arrived at the credit crunch which has brought real economic hardship to the many through no fault of their own and enriched the few.

Gordon Brown and Tony Blair's New Labour is entirely complicit with the energy companies, as their failure to help the people who will need help over the winter months and New Labour's failure to consider a windfall tax to curb excess profits from the utility companies speaks volumes as to how far New Labour has left behind the ordinary people in favour of courting the money men in the City.

Sadly for growing numbers of ordinary families across Wales this winter it may well come come down to a stark choice of eating or heating as the interests of big profit for big business in comes before the needs of ordinary families.