23.10.08

Regulate the Energy Industry to Stop High Prices & Windfall Tax to Help Struggling Households

“I now have to decide whether to heat our flat or put food on the table,” Annie, mother of one

CORPORATE GREED OR PEOPLE’S NEEDS
IT IS TIME FOR THE LABOUR PARTY & GOVERNMENT TO CHOOSE

The facts…

· Many energy bills ‘unjustified’. Gas and electricity customers are paying 33% more than they should. Why? Regulation is poor and wholesale markets are the cause. Did I say this? No—Allan Asher did, former head of Energywatch for five years.

· The main UK energy providers have seen their profits jump from £557 million in 2003 to over £3 billion currently, an increase of 538%। (Source—Unite).

· Dividend payments to shareholders have increased by £257 million in a year। (Source—Unite)।

· In 2008, the privatised energy companies set a new record for price rises with the average bill jumping up by 38%. (Source—BBC).

· Government plans to make UK homes fuel efficient are laudable but not sufficient. (Source—Unite).

· By government estimates, 2.5 million families already live in fuel poverty. The National Housing Federation claims the figure is closer to 5.7 million. Every 10% increase in energy prices means a further 400,000 people are forced into fuel poverty. (Source—National Housing Federation).

· It is nonsense to claim that a windfall tax will divert money away from energy investment—energy companies will invest in new building because it makes business sense to do so. (Source—Common Sense).

EUROPE IS BETTER PROTECTED

In August this year, the French government ordered a 2% cap on electricity price increases. I did not see EDF energy stamping its feet and stopping investment. The French law restricts
energy price rises to the rate of inflation.

What did EDF do in the UK—another price hike: 17% electricity and 22% gas! Who is paying for the French regulatory market—UK EDF customers.

In Italy, even Berlusconi’s centre right government took steps to counteract the greed of the energy sector by increasing corporation tax for energy companies from 27.5% to 33%.

ARE YOU LABOUR ENOUGH TO DEMAND A ‘WINDFALL TAX NOW’ AND CHALLENGE OUR MP?

What can I do?

Call for a constituency wide debate by asking your branch to submit a motion to the GC calling on your MP to support a windfall tax.

But what are we asking our MP to do?

To call upon the government to implement a windfall tax on the energy companies to provide immediate financial assistance to those of us facing fuel poverty this winter.

To immediately legislate for regulation of the energy sector to make sure that these massive price rises cannot happen again, meaning that price rises are limited to inflation similar to France.

To immediately abolish the rate difference between those that pay by direct debit and pre-payment meters.

To make sure that people in 21st Century Britain do not have to choose between heating their homes or feeding their children.

Is that really so much to ask for?

Which headlines do you want to read?


More repossessions as people struggle with bills...More deaths this winter...Energy greed leads to 300,000 jobs losses...

OR

Labour takes on energy fat cats...Government reduces number in fuel poverty...Government calls time on unregulated energy market, bills down by 35%...

CORPORATE PAY WALL OF SHAME

eON > Paul Golby £1.4 m
——————————————-
BG / Centrica > Sam Laidlaw £1.9m
——————————————-
Scottish & Southern > Ian Marchant £1.2m
——————————————
RWE Power > Andrew Duff £673,704 > Bonus is a secret
——————————————
EDF > Vincent de Rivaz > £600,000 > Bonus is a secret


The modern day Marie Antoinette, Jake Ulrich, Managing Director of Centrica recently replied to a question asking how the elderly and vulnerable should keep warm this winter। He said, “They should wear a second jumper।”


Why are we working so hard and paying so much? If, like me, you feel this is wrong, contact your MP and tell them; raise it with every Labour politician and representative you meet and call on the CLP to demand an immediate windfall tax and regulation of the energy industry so that greed and mismanagement are not rewarded with the sweat of our labours.

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