Labour should refer energy companies to Competition Commission

Responding to reports that British households will not see a cut in their fuel bills due to the European gas shortage, Shadow Energy Secretary Greg Clark said:

“When global gas prices were falling Britain’s energy companies said that they couldn’t cut prices to customers because they were tied into long term contracts. But now short-term wholesale prices have increased because of the Ukraine crisis. This is being used as an excuse to keep prices for British customers high.  They can’t have it both ways.

“Labour promised in October to bring prices for customers down.  Ed Miliband gave energy companies an ultimatum, warning that unless they dropped their prices within a month he would take urgent action. Three months later they have ignored his call and he still has not acted, meaning families will not benefit from any cuts to their fuel bill this winter. 

“In December I said that unless prices came down by Christmas, the Government should refer the energy companies to the Competition Commission.  The time has now come for Labour to take the “urgent action” they promised us months ago.  They need to show the energy companies that they mean business and refer them to the Competition Commission immediately so we can finally get to the bottom of their failure to pass on price reductions to consumers.”