We must remember that the energy price cap is simply a sticking plaster and that there is a much deeper problem with the UK’s energy system that needs to be addressed.
Over the past few months report after report has detailed the unfairness of the current system but it must be noted that the final bills consumers face are not simply an issue of supply company manipulation.
The Energy and Climate Intelligence Unit found last year that the six Distribution Network Operators made an average profit margin after tax of 32% a year between 2010 and 2015, equating to £10 billion over six years.
At the same time shareholders have received £5.1 billion in dividends, half the net profit generated and £13 per household per year.
Citizen’s Advice last year calculated that network operators including the National Grid had made £7.5 billion in “unjustified” profits which, in their opinion, should be returned to consumers.
This is quite frankly exploitation of a natural monopoly. This is not a market and there is no competition.
The Labour Party has been clear that it will not allow this exploitation to continue. We will radically reform the UK’s energy system not just tinker around the edges and if the Government is serious about protecting consumers we expect them to do the same.