Power bills 'nothing to threat of blackouts'
Sep 30 2008 by William Green, The Journal
SOARING energy bills pale into insignificance compared to the threat of power cuts, a senior Tory spokesman claimed yesterday.
Charities have warned of pensioners choosing between heating and eating, but shadow energy minister Charles Hendry defended energy firms from claims they were ripping off consumers despite making bumper profits.
Speaking at a fringe event at the Tory conference, he said the companies were being asked to pump billions of pounds into the country’s energy system and that the lights could go out without that investment.
Tim Pyke, head of climate change at energy firm E.On UK, said his firm was only reflecting the growing cost of energy on international markets.
He insisted the company was trying to protect consumers by investing in a mix of fuel supplies, including the use of coal – which could provide a boom to the North East economy.
His comments came after E.ON senior executive Mark Owen-Lloyd recently sparked fury after joking that continued high gas and energy prices would mean “more money for us”. The firm later apologised unreservedly and warned he could face disciplinary action.
Speaking at the fringe event, Mr Hendry said: “Are they ripping off the public? That is very emotive language. And I think what we are seeing at the moment is prices going up for reasons which are structural.
“Are they making too much profit? These are the companies which we are asking to invest billions of pounds in the energy infrastructure of our country. If they don’t, the lights are going to go out. And so what we are concerned about at the moment in terms of price rises will completely pale into insignificance when we start getting outages in 2014, 2015.”
He warned energy companies – which are international – could leave Britain if they decided it was not an attractive environment and invest elsewhere, leaving the UK in a “most terrible mess”.
Gordon Lishman, from Age Concern, said energy companies were responding to the market, but added: “I do think in some cases, they have taken advantage of the increasing costs to boost profits in the short-term.”
He warned that a more fundamental rethink on energy policy was needed, saying: “There is a long-term problem with how to help low-income people with higher energy prices and there is too much short-termism.”
