As Parliament is not sitting, I have been able to spend some of my time going round the town’s residents’ associations. I find this very valuable, as I hear at first hand many of the concerns of the town.
For the first time this year since I became the town’s MP, the dominant issue of concern and discussion amongst residents’ groups like Burn Valley and Middleton Road Action Group is of rising energy bills. This is not surprising. You can’t have failed to see the depressing news that British Gas have put up their prices of gas and electricity by the biggest since price of a utility ever seen in this country. Gas prices have increased by 35% by British Gas, with electricity prices 9%. The average duel fuel bill for a British Gas customer is forecast to go up by about 25%, with the average annual bill at about £1,250. This news comes a few days after EDF Energy put up gas prices by 22% and electricity prices by 17%.
The reason for these huge increases is put down to the rise in demand for energy across the world, and, as British Gas themselves said, “soaring wholesale gas prices”, i.e. the price that the utility companies can buy their energy to pass onto you as customer. There is a very close link between the high oil price and the price of wholesale gas, which I’ve never really understood – it’s like pegging the price of apples to the cost of a McDonald’s Happy Meal. But the upshot of all of this is that people across the country – and people in Hartlepool – are really suffering.
All this, as I’ve said, is happening on the back of a high oil price. The oil company BP last week announced a 6% rise in profits for 3 months in 2008, to £3.4 billion. That’s 3 months, not a year, by the way. I’ve worked out that BP will make about £130,000 of profit by the time it takes you to finish reading this column. Not bad if you can get it.
The issue of fuel poverty is something that I feel strongly about. The first question I ever asked in Parliament was on the issue of fuel poverty. I am particularly proud that I was able to work with the residents of Elmtree Park in Seaton Carew to produce the first ever scheme in the country where Warmfront grants were pooled together to help the estate receive main supply gas. The matter of huge increases in gas and electricity prices is of real concern to me.
So what can be done about it? The gas and electricity companies are private. There is little if any prospect of capping prices and the government dictating that prices should be lowered. But what about a windfall tax, where there is an exceptional one-off tax on energy companies to help fund more help for households who are struggling to pay for their gas and electricity? I think this is an attractive option, although it is not without its risks and repercussions – oil companies will claim that oil exploration is an expensive business, and is getting harder and more costly with oil reserves running out. A windfall tax will lower the profits which in turn limit their exploration, which increases the cost of oil still further.
I think the era of cheap energy is at an end. In the long term, what we need to do is reduce our reliance on oil and foreign suppliers of energy. I think nuclear has to play a part in this. I am also attracted to the idea of greater renewables – I like the idea of each house having some source of renewable energy like a mini wind turbine or a photovoltaic cell. But in the shorter term, as was mentioned at the residents’ groups, there is a lot to improve the energy efficiency of our homes.
Check, for example, whether your hot water tank has an insulating jacket. Check whether you have loft or cavity wall insulation. There may be grants available to you to help do this. I am keen to help and would encourage you to get in touch to see what your household can do to cut the cost of energy for you.
Latest Comments
through an identity crisis at
the moment. And to be honest,
Labour is at the very heart
[...]
I see this morning another HUGE
tax hike this time car tax. I
have been a New Labour voter
since Tony [...]
having worked until the age of
60 and attaining a full state
pension plus a small [...]