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Feeble energy reforms fail to impress

Ed Davey given a Commons roasting over ‘landmark’ Con-Dem plans

Energy Secretary Ed Davey tried desperately to prop up the future prospects of under-fire private energy firms on Thursday with a feeble raft of emperor’s new clothes “reforms.”

In a desperate bid to head off more radical action — with huge public support for renationalisation — the minister threw the big six firms a bone by promising merely to tweak the current set-up.

Among the proposals unveiled were a probe into firms’ accounts, higher penalties for market manipulation, and allowing people to switch supplier within 24 hours.

The feeble gesture in the face of growing anger at the rampant profiteering of energy companies was quickly torn apart by Labour and campaigners.

Wansbeck MP Ian Lavery declared that there was growing evidence of a “hidden, protected, secret sort of cartel trading scheme” where energy firms manipulated the wholesale and retail market to skim off profits and ramp up prices.

He challenged Mr Davey to confirm “hand on heart” that he was not aware of anything like this happening. 

The Energy Secretary avoided the question.

Bolsover MP Dennis Skinner also piled in on the beleaguered Lib Dem.

“There’s plenty of evidence now, especially with the price increases over the course of the past few weeks, that indicate they’re acting like a cartel and that’s what you ought to examine,” Mr Skinner said.

“And that’s why the public out there want us to have a price freeze when Labour gets in and that’s what you should have adopted today or secondly, and it’ll almost certainly happen, to take them back into public ownership.”

But British Gas residential energy chief Ian Peters, whose parent firm Centrica raked in £2.5 billion in pre-tax profits last year, heaped praise on Mr Davey for his light-touch package.

“Rebuilding trust in Britain’s energy market is a top priority, which is why we strongly support the proposals outlined by the secretary of state today,” he gushed.

EDF Energy chief executive Vincent de Rivaz also welcomed the proposals.

“We have nothing to hide,” he claimed.

TUC general secretary Frances O’Grady said: “These proposals will do little to help, and look like the result of a desperate search for something to say rather than action to help household budgets.”

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