Energy Prices: A Heated Issue

In the past week we have seen a rapid rise in energy prices. Companies such as Npower and British Gas have risen prices by double percentage points Npower has risen the cost of its energy by 10.4%, which is simply staggering as there’s huge gap between prices rises and income rises.

Many would cite this as companies reacting badly to Ed Miliband conference speech yet this is not a recent phenomenon. Last winter the 6 main energy companies outlined price rises between 6% and 10.8%.

Simply put this is unacceptable considering that natural gas prices for example have fallen by 1/3 since there peak in 2011. The fact that this isn’t some small rogue company but all the major suppliers shows us that there are fundamental flaws in the industry as a whole. The utility’s industry acts not as a free market as it should be in theory but as a cartel.

I just want to say that I don’t mind price rises if they are justified

I just want to say that I don’t mind price rises if they are justified. For example if there had been massive increase in the wholesale price of gas then a price rise would be justified. This current wave of hikes, is not. There is no clear solution to this problem, Ed Miliband’s policy may be a good short term answer to the problem but not a long term one.

What Britain needs is to invest in its infrastructure therefore having a more efficient energy sector and using a range of energy sources. Britain as an island nation should be at the forefront of using tidal energy which will not only be cheaper in long run but also better for the environment. This investment can take in range of areas to have broad and diverse energy policy. We also need a tougher regulator when Ofgem is seen by many as not fit for service.

Britain situation isn’t unique, many countries face similar problems but that doesn’t mean that we should ignore the problem rather we should tackle it head on and try to save money and tackle this country’s over reliance on gas and other non-renewables. Government seems ill disposed to do much about it and I doubt any radical action will be taken.

Even Ed Miliband is ignoring calls for among those in his own party about re-nationalisation. This issue is a contemporary one but it’s been around for years and I doubt that the next government will tackle it what’s clear is changes needs to be wholesale and looked at from different angles from supply to infrastructure all of which be for Britain’s interests rather than having to shell out extortionate amounts that only benefits the few.