The Rt Hon Chris Huhne, MP
Secretary of State
Department of Energy and Climate Change
3, Whitehall Place
London
SW1A 2HH

21st July 2011

Dear Chris,

I am writing to you on behalf of a constituent who is concerned about the impact of the rising cost of energy. I agree with my constituent's suggestion that action needs to be taken against those companies who are increasing their profits whilst people struggle to afford to keep warm.

I am particularly concerned that OFGEM considers the gas and electricity markets in Britain to be competitive enough to not to require price controls. I disagree with this view and strongly believe that firmer Government action is required to address fuel poverty and its consequences. As you know, the UK suffers between 36,000 and 46,000 excess winter deaths each year. It is clear that the question of affordability is a matter of life and death for many people struggling with the high costs of energy.

Whilst the need to redress the poor quality of the housing stock through energy efficiency is clearly the most rational long term solution to tackling fuel poverty, I am sure you agree that Government also has a duty to shelter people from incessant price hikes. National Energy Action has estimated that if all suppliers increase their prices at the same rate as British Gas and Scottish Power, fuel poverty will affect an additional 1 million households in England, and a further 200,000 households in the rest of the UK.

I do not believe that the ability of customers to switch energy suppliers or tariffs in order to take advantage of cheaper tariffs is sufficient to mitigate price rises. Ofgem's recent investigation found vast evidence of mis-selling by energy companies and research by Consumer Focus has shown that, when switching, 40 % of gas customers and 50% of electricity customers actually move on to a more expensive tariff. This is a clear indication that many consumers are unable to successfully navigate the complicated multitude of tariffs. I therefore urge you to consider all options for limiting the retail cost of energy in the UK and I look forward to your response.

Yours sincerely,

Caroline Lucas, MP, Brighton Pavilion

Read the Department's reply (2 pages: 1 2)