PROFITS BEFORE PEOPLE

The news that the ‘Big Six’ energy cartel members are set to double their profit margins over the next year (and this is according to estimates by the regulator, Ofgem) probably won’t surprise anyone. Back in 2013, Ofgem estimated that suppliers would make an average pre-tax profit of £53 per dual fuel customer (a margin of 4%). Now, in the year ahead Ofgem expects the energy firms to make £106 per customer (increasing their margin to 8%). Naturally the cartel members have accused Ofgem of releasing inaccurate figures.

Ofgem has said that it was further evidence that the market was not working as well as it should. The big six (and the profits they make) have already been referred to the Competition and Markets Authority (CMA). Ofgem has also written to the suppliers asking why the falls in wholesale prices last winter have not resulted in lower bills for hard-pressed energy customers.

As part of the on-going struggle with the ‘Big Six’, Ofgem has also announced that electricity customers will see an average reduction of £12 a year on their bills, from April 2015. This follows plans to limit the prices that can be charged by Britain's six distribution companies, which carry power to homes and businesses. The price curbs could affect 29 million English, Scottish and Welsh energy customers. Ofgem's plans will also see the distribution companies spend £ 17 billion pounds to upgrade their networks. The distribution element makes up about 8% of a typical dual-fuel bill and is the only part controlled directly by Ofgem.

Five out of the six network companies (UK Power Networks, Northern Power Grid, SP Energy Networks, SSE Power Distribution and Electricity North West) were ordered by Ofgem to cut their prices. So far, only Western Power Distribution had its pricing and investment plans approved by Ofgem. The new energy prices will apply for eight years, from April 2015 until 2023. Ofgem will announce a final decision on the proposals in November 2014 after carrying out a consultation.

While this may bring a crumb of comfort to hard-pressed customers, it fails to address the fundamental problem with the so-called energy free market. The ‘Big Six’ can do because they are pretty much free from any meaningful and effective regulation. Any criticisms that may periodically emanate from Westminster can be pretty much ignored as the Westminster based political parties have little appetite to reform the deeply flawed energy market and even less inclination to curb the excesses of the ‘Big Six’ energy cartel members.

Meanwhile, in Wales, Plaid has been argued the case for the establishment of a ‘not for dividend profit’ company, simular to Glas Cymru which works within our water industry. This would firmly ensure that customers come before shareholders dividends and the City of London. An all Wales ‘not for dividend profit’ energy company would mean that all the profits would be reinvested back into the energy sector in our country. This would also ensure that Welsh families, households and small and larger businesses get a good deal on their energy and our country will end up with secure sustainable energy supplies.

HOPING FOR A MILD WINTER

When I was a child I always hoped for long warm summers so I could enjoy them. Now that I am older and paying my own energy bills, I still hope for mild winters and warm long summers. Not I hasten to add so that I can enjoy them, but, because I like most the people are getting fiscally violated by the ‘big 6’ energy cartel members and I need to keep my energy bills down.

So news that households in England and Wales cut their energy use by a quarter over a six year period, according to the Office for National Statistics (ONS) should come as now surprise. The ONS report that average consumption of gas and electricity fell by 24.7% between 2005 and 2011 – this should be good for us the energy customers and good for the planet (less green house gases) - save for the fact that we (the energy customers) have faced steep increases in our bills over the period, and are perhaps trying to economise as a result.

Personally if I can make it to October before I put the heating on, or later, then that from my point of view is a bonus.  Ofgem (the energy regulator) says that energy bills have risen by 28% in the last three years. Some of the saving are down to increasing use of energy efficiency measures, with insulation, double-glazing and new boilers – ironically this is something that Plaid first advocated some thirty years ago – long before we started getting fleeced by the energy companies.

The ONS also said that another reason for the fall in consumption might be down to the introduction of energy ratings for properties and household appliances, something which may allow customers to make informed choices. Ofgem also noted the price rises, pointing out that the average duel fuel bill is now £1,420 a year.

ONS figures also showed that energy consumption is highest in England in the East Midlands, and lowest in the south-west of England, which has the mildest climate in the UK. The Department for Energy and Climate Change figures showed that Scotland still has the highest energy consumption of any part of the UK. They also noted that gas consumption in Scotland fell by 14% between 2005 and 2010, as shown by figures from March 2012.

One thing that could help is the smart meter, which show people exactly how much energy that they are using at any particular moment in time. While both the concept and the real thing have been around for a while, when it comes to installing them, the big six members appear to be dragging their feet. It is hoped that they will be installed in 53 million homes by 2020.

Household energy bills have become a major drain on finances, with people literally choosing between heating or eating. Fuel poverty is now alive and well here in the UK. Successive Westminster governments, both formerly New Labour and Con Dem have done little to curb the excessive profits raked in by the ‘big 6’ energy cartel members but have been happy to rake in extra taxes on profits.  

YOU COULD NOT MAKE THIS UP...

If you give someone enough rope then they will probably hang themselves, that old saying could well be applied to the latest escapade of one of the big six energy cartel members. They collectively continue to fleece their customers and to maximize their profits at every opportunity.  The latest scam, involves the energy firm E.On who have been has been hit with a £3 million pound penalty for failing to prove that it distributed free energy-saving light bulbs to its consumers. It gets better, it turns out that some of the free energy saving light bulbs were sold in the Irish Republic, while E.On was unable to prove that others were handed out to its customers.  

Now the free low energy saving light bulbs were supposed to be part of an energy efficiency scheme that had been ordered by regulator Ofgem back in 2010 as part of a carbon reduction programme. Some £2.5 million of E.On's penalty will end up being used to reduce the bills of vulnerable households next winter, as it will go into the pot of money that’s is regularly put aside for those of us who face fuel poverty and receive support from the Warm Home Discount. The remaining £500,000 will go to the Treasury as a fine.

The good news is that E.On has apologized and has claimed that it had distributed almost 25 million free energy saving light bulbs to customers back in 2010 to comply with a government programme to save energy, known as CERT. Sounds plausible, save for the fact that it was only able to account for around 21 million of the bulbs. Three thoughts cross my mind, one is why should any of the customers of the big six energy cartel members be remotely surprised that this happened, secondly a fine of £ 3 million pounds if nothing else shows how toothless the energy regulator actually is and thirdly, accepting that this is a relatively minor misdemeanor on the part of a cartel member, so what exactly do they have to do before the farce that passes itself of as the free market for energy is finally sorted out? 

LET THE GOOD TIMES ROLL...

Profits before people

One of the real long lasting legacies from the blighted wasted years of Conservative and New Labour rule in the 1980's, 1990's and 2000's is the fact that the members of the 'Big 6' energy (cartel) companies can continue unchecked to fleece their customers with little or non existent regulation. Ofgem (which nominally regulates the energy industry) has produced statistics that show that members of the 'Big 6' have more than doubled their retail profit margins over the last 18 months and are earning an average of £95 pound profit per household on those who hold dual fuel bills (a 7% profit on previous figures). Ofgem estimates that profits per household will reach or pass the £100 pound mark within the next 12 months. Recently acquired statistics from EDF, British Gas and the rest of the cartel members show that their profit margins from power generation, which is run as a separate operation form the business of energy sale to customers, came in at around 24% in 2011 and has risen since. Ofgem revealed that the average profit margins for energy generation within the cartel rose from 18.4% in 2010 to 24.4% in 2011. All of the 'Big 6' cartel members ramped up their energy charges between October 2012 and January 2013 to squeeze as much as they can from their customers. Even the members of the 'Big 6 ' energy cartel are perhaps getting a little embarrassed by their own blatant profiteering and their own management bonus culture as save for via Ofgem and the press it is becoming increasingly difficult to find just how much they are squeezing from us.

NOT SURPRISING REALLY

Quids in!

The news that Energy supplier SSE has been fined £10.5 million pounds by the Ofgem (the energy regulator) for misselling gas and electricity should come as no real surprise. Neither should the fact that this is the largest ever imposed on an energy supplier by Ofgem. SSE, the energy company formerly known as Scottish and Southern Energy, was found guilty of "prolonged and extensive" misselling as a result of management failures. The misselling related to a combination of telephone, in-store and doorstep sales and was exposed by customers. They had been  contacted by SSE and were exposed to misleading statements, inaccurate and misleading information on SSE's charges, and misleading comparisons between SSE's charges and costs of other suppliers. Customers were told they could save money when in fact they were switched onto a more expensive contract.

Ofgem no doubt hopes that a "clear message" has been sent to energy suppliers who failed to treat customers fairly. This is the second of four misselling cases that were started by Ofgem in 2010. Back in March 2012, EDF Energy paid out £4.5 million pounds to vulnerable customers after they breached marketing rules. Scottish Power and Npower are also subject to ongoing investigations. Considering that we have what is in effect a fairly unregulated energy market, one that is dominated by a 6 member energy cartel, where profit is the only motive this should not surprise anyone. The energy company bosses rake in fat bonuses (Centrica, who own British Gas, split £16 million pounds between themselves recently).

Before the last Westminster General election, the  Conservatives talked about having an independent inquiry into the £25 billion-a-year energy industry which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas. This, was, however, quietly kicked in to the long grass by the Com Dem Coalition Government. So there we have it successive Westminster Governments (of the formerly New Labour and the Con Dem coalition variety) have done nothing to regulate the culture of excessive profits that predominates amidst the ‘Big 6’  and we should not expect anything to be done soon to help us hard pressed customers. 

OUR POUNDS IN THEIR POCKETS...

News that British Gas profits have risen because a colder 2012 meant people used more gas won’t surprise many people, let alone British Gas customers. British Gas revealed that profits from the residential energy of £606 million pounds for 2012, up 11% from the previous year, gas consumption had been up 12%. Profits are up 16% to £312 million pounds at its residential services unit, which covers services such as repairing boilers. Centrica, British Gas’s parent company, has reported an adjusted operating profit of £2.7 billion for 2012, up 14% from 2011.

Lest we forget, this winter British Gas raised its gas and electricity prices by 6% in November 2012, as did all of the other big six energy cartel members. Ofgem (Energy regulator) provided details of the plan last week, which will also limit the number of tariffs that suppliers can offer and force them to make bills clearer. The energy cartel’s excessive winter profit taking even provoked the Prime Minister David Cameron to step in and state that he was going to force them to put customers on their cheapest tariffs.

While this was nice, but it was more about being seen to look good as the Conservative pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry long subject to lengthy and repeated criticisms about accusations of profiteering on electricity and gas was quietly dropped in August 2010.  The Conservatives have moved on from October 2009 when then Tory Energy Spokesman, Greg Clark (now Financial Secretary to the Treasury) said that the "cartel" of the big 6 energy firms would be referred to the Competition Commission by an incoming Conservative Government.

An 'independent' investigation into the Energy companies refusal to pass on reductions in wholesale energy prices to customers would have been nice as would the promised 'Energy Revolution' to overhaul the energy sector billing structure and charges. Then Tory Energy Spokesperson condemned the unacceptable lag between the cost of wholesale gas prices and household energy bills - noting that customers were on average being charged some £74 pound too much for their energy per year.

Oddly enough wholesale prices for domestic gas are currently lower than they were five years ago. At the moment it’s all about our pounds being in their pocket and maximising the cartel’s profits which coincidently boosts the Treasury’s tax revenues. Few of us this winter had as snug and toasty a relationship with the energy companies as that which exists between the political parties within the Westminster village (and without) and the energy supply companies.

Before the last Westminster general election, the Conservatives and the Liberal Democrats made repeated criticisms (and much political capital) from New Labour for its failure to tackle prices charged by the Big Six suppliers and repeatedly demanded an inquiry by the Competition Commission. Now the party formerly known as New Labour is busy trying to make political capital from the Con Dem’s failure to failure to tackle prices charged by the Big Six suppliers, something they conspicuously failed to do in the thirteen years they spent in office.

DON'T HOLD YOUR BREATH...

It started as a story in the Gruinad (The Guardian 13.11.2012) stating that the City watchdog, the Financial Services Authority, is now investigating claims by a whistleblower that the UK’s £300 billion wholesale gas market has been "regularly" manipulated by some of the big 6 power companies. The Guardian also notes that Ofgem (the energy regulator)  has been separately warned by a company responsible for setting so-called benchmark prices, ICIS Heren, that it had seen evidence of suspect trading on 28th September (this is end of the gas financial year) and gas prices on this date can have an important influence on future prices.

The claims suggest that dealers made unrealistic bids (on the 28th September) when information was being gathered to set the wholesale gas price, basically to suit their own trading position (maximise profits). The alleged manipulation is said to have reduced the wholesale price, and as such does not imply any knock-on impact on the retail price paid by customers. Later today the Con Dem Energy Secretary Ed Davey will make a statement to the House of Commons later as regulators investigate claims that wholesale gas prices have been manipulated.

Now the wholesale gas market includes everything from the UK's own North Sea gas supplies, to gas from Norway or elsewhere, or arriving in the UK by ship as LNG, liquefied natural gas. Energy companies buy gas at the wholesale price and then sell it on to businesses and domestic users. The cost of wholesale gas makes up the majority of our energy bills - 45% of the average energy bill is made up of the cost of wholesale gas, supply costs and profit margins.

The whistleblower, who worked for ICIS Heren, flagged up their concerns after identifying possible attempts to distort the prices reported by the company. These prices are especially important because many wholesale gas contracts are based on them and even small changes in the gas price can cost or save companies millions. These revelations come at an unfortunate time for UK’s energy sector, with many of the big six suppliers (the cartel) under fire for alleged profiteering on household energy bills and mis-selling on the doorstep. So far four of the UK's big six energy suppliers have released statements denying any involvement.

When it comes to regulation of the energy market the silence from the Con Dem Government has almost deafening. In the heady days of opposition, back in October 2009 the then Tory Energy Spokesman, Greg Clark (now Financial Secretary to the Treasury) stated that the "cartel" of the big 6 energy firms would be referred to the Competition Commission by a Conservative Government. He also  condemned the unacceptable lag between the cost of wholesale gas prices and household energy bills and noted that customers were on average being charged some £74 pound too much for their energy per year.

An 'independent' investigation into the Energy Company’s refusal to pass on reductions in wholesale energy prices to customers would still be welcomed by many hard pressed energy customers. As would the promised 'Energy Revolution' which was supposed to overhaul the energy sector billing structure and charges.

In many ways it is somewhat ironic that we find ourselves here, as a Conservative Government started the whole sorry mess in the first place, by privatising the energy market in the first place. This threw any rational energy pricing structure upon the whims of the 'market' by allowing the newly privatised energy companies to price gouge customers in the first place and since the effective demise of any real competition in the ‘market place’ we have all been regularly fleeced.

As for any inquiry into irregularities in the energy market, it is worth noting that once in Government that was consigned quietly to the too difficult pile. The pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry (which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas) was quietly dropped by the Com Dem Coalition Government. So I won’t hold my breath.

HEAT OR EAT AGAIN?

While we are enjoying the occasional (if fleeting) summer days, many of us are wondering about what our winter fuel bills will be like, especially if we have a bad winter. Some of us may face the stark choice of heating or eating this winter. Energy supply wise, we are now in the situation where we are now even more dependent upon imported gas from either unstable regions or dubious suppliers than ever before, and we the customers are facing increasingly expensive domestic energy bills.

News that research by Consumer Focus Wales now shows that a third of those asked described their energy bills as more of a worry than it was a few years ago will surprise few of us. The research shows that people on lower incomes, are unsurprisingly those most likely to be struggling to afford their energy bills. As has been previously noted the elderly and people in rural areas are also affected by increased energy bills. Almost 25% of people said energy bills needed only to go up by another £120 (a 10% increase) and they would also be struggling to afford the payments.

The stats make grim reading, the regulator Ofgem, has said that household energy bills have effectively doubled since 2002 and are now £1,250 per year. Back in 2008 the industry’s average dual fuel bill for both electricity and gas was £885. The ‘Big Six’ energy supplier’s cartel announced cuts of 5% in either their electricity or gas prices, but, this failed to reverse the years of price increases.

Consumer Focus Wales research shows that the proportion of people in Wales falling in to debt with suppliers is actually rising. Some 8% of energy consumers say they have fallen behind with energy bill payments in the last year – this figure rises to one in seven among young people and lower income households. Back in 2010 Consumer Focus Wales found that 5% of people were in arrears on their gas and electricity payments.

Back in February and March one by one of the 'Big Six' quietly announced a raise in profits at a time when many people were trying to avoid or to live with fuel poverty, something that was never going to go down well with hard presser domestic energy customers. Centrica (who own British Gas) revealed a group operating profit of £2.5 billion pounds, up four percent on 2010.

This unfortunately timed announcement came against a backdrop of growing fuel poverty, which affected (at the time) around 5.5 million households in the UK. The definition of Fuel poverty is when a household spends more than ten percent of their disposable income on gas and electricity. Fuel poverty is one of those things that the previous (and former) New Labour Government and the current Con Dem Government have done nothing about and no doubt quietly hope will go away or that the rest of us will continue to suffer it in relative silence.

Nothing has been done or will be done to curb or regulate excessive profits from the energy companies via windfall tax. The talk about customers benefiting from dual fuel bills, etc, is little more than a distraction. We have had a dual political failure, something that speaks volumes as to how far both the former New Labour Government and the Conservatives (and their Lib Dem coat holders) have gone to drop even the pretence of standing up for the interests of ordinary people in favour of courting the City.

It looks like we are going to get hit by another rise in domestic energy bills, kicked off this time by SSE, (Scottish Hydro, Swalec and Southern Electric) who have announced that they will increase its domestic gas and electricity prices by an average of 9% from October 15th. I'll bet the City and the shareholders will be happy, unlike the rest of us.

For growing numbers of ordinary people this winter it may come down to a choice of heat or eat, literally choosing between putting food on the table and heating their home. The only real winners here are HM Government (with extra tax) and the big six energy companies (with fat profits) all of us as customers are losing out hand over fist as the energy cartel continues to ramp up its profits.

TIBERIAN LOGIC OR SYMANTICS AND DIVIDENDS

The Roman Emperor Tiberius, discussing the raising of tax revenue from the imperial provinces said "It is the duty of a good shepherd to shear his sheep, not to skin them." Certainly when it comes to the current unscrupulous activities of the energy cartel members, it is pretty clear that we are all being skinned if not properly fleeced.

By now most people should be aware that British Gas owner Centrica has reported operating profits of £1.3bn in the six months to 30 June, down 19% on the same period last year. The Centrica results also include a 54% fall in operating profits at its residential energy division, British Gas, to £270m.

British Gas not surprisingly says that higher wholesale gas prices are responsible for the fall in profits. By coincidence British Gas is prepares to raise gas prices by 18% and electricity prices by 16% in August. The BBC suggests that this increase will push up the average bill for around nine million customers by £190 a year.

British Gas getting its retaliation in early has said that it has been selling gas at a loss since April due to the rising cost of gas on the wholesale markets. They also say that the core business of home gas supply British Gas has lost customers and lost market share when compared with the same period last year.

Customer accounts for gas were down 0.7% from last year and market share down 0.5%, though it picked up customers for electricity supply. Oddly though British Gas did record an increase in total customers in the same period up 159,000 to 16.1 million accounts.

Centrica (British Gas's parent company) is a major gas producer and sells gas on the wholesale market and reports increased profits from operations, which include production in the North Sea and Trinidad, which increased by 14% to £414m. British Gas is one of the 'big six' energy companies (basically an energy cartel) which control 99% of the UK energy market leaving scant opportunities for any new small energy producers - so much for the free market?

Any chance of regulation on unsavoury business practices and cartel like behaviour from the Con Dem Government - I suspect that hell might freeze over first!

PROFITS BEFORE (FUEL) POVERTY?

Perhaps they thought is was a good day to bury bad news, what with the News of the World / News Corp scandal raging to quietly announce yet another rise their prices and boost their profits. News that British Gas have decided to increase their profits by increasing their domestic customers bills should not shock us. The members of the energy cartel have long put the dividend and their profit in advance of any fears of putting people into fuel poverty. That's the price we all pay for the alleged 'free market' in energy supply.

For the record:

• Scottish Power will raise their gas prices from August 2011 by 19% (electricity prices will rise by 10%
• EDF (who incidentally owe the French Government some 44 billion euros) raised their gas prices by 6.5% and their electricity prices by 7.5% in March 2011
• NPower raised their gas prices by 6.5%  and their electricity prices by 5.1% in January 2011
• Scottish and Southern raised their gas prices by 9.4% in December 2010

Some 9 million British Gas customers will see their gas bills rise by some 18% next month - they will also face a 16% (on average) rise in the cost of their electricity. They (British Gas) even admitted that there was little point in people trying to change suppliers as the other members of the energy cartel are likely to raise their prices as well.

With some customers facing a 24% rise in their gas prices, many will face a rise of nearly £190 in their annual dual fuel bills. With according to uSwitch.com some 6.3 million households across the UK in fuel poverty this is not good news. With a painfully weak Con Dem Government on Westminster who dropped any ideas of investigating the energy market last year what hope have the ordinary energy consumers have of fair energy prices? None as far as I can see...

BETTER LATE THAN NEVER

I welcome the news that Ofgem is to hold a wide ranging investigation into the questionable practises of the UK retail energy sector after the recent price rises. There is a real need to investigate the current 'competitive market' which does not work in the interests of customers and that an investigation is needed to clamp down on alleged 'cartel-like behaviour'.

We need is a serious investigation into the competitive practises of energy companies by the regulator. Any investigation must be thoroughly in-depth and tackle the cartel-like behaviour of these companies.There can be no justification for profit margins to rise by 40% in less than three months while at the same time inflicting significant energy price hikes on consumers.

British Gas customers are to face a 7% rise in gas and electricity bills which comes into effect on 10th December. As a result of rising wholesale prices, said British Gas. oddly enough British Gas has become the second major UK energy supplier to announce price increases for the winter months - when there is a greater demand, and coincidently a greater profit to be made.

Scottish and Southern Energy also intend to raise their domestic gas charges by 9.4% at the start of December, blaming wholesale prices for the increase in customer bills. This price increase announcement, was made just before just before they reported a 6.1% fall in pre-tax profits to £386m in the first half of the company's financial year.

The bottom line is that current energy system and the energy market seriously disadvantages all consumers, especially the most vulnerable in our society. There needs to a mandatory social tariff for consumers so that the fuel poor are removed from a competitive market that simply doesn't work for them or the rest of us.

We have a very real problem here in Wales where, according to National Energy Action Cymru, a third of properties live in fuel poverty. We must take steps at local, national and international levels to begin tackling the causes of fuel poverty.

Ofgem must clamp down on these injustices and come back with clear and firm recommendations. If the energy regulator takes firm steps against the actions of these greedy energy companies then this would be an important first step.

I suspect that the Ofgem investigation, won't come close to the Conservative pre-election promise for a proper enquiry into the energy industry. Oddly enough that pre-election pledge for an independent inquiry into the £25 billion-a-year energy industry (which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas) was quietly dropped by the Com Dem Coalition Government in August, no doubt when they hoped that no one would notice.

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.