THE topic of energy prices is under intense scrutiny at the moment. With the big energy providers lining up to increase costs by around 10 per cent. It is right that the cost of energy is looked at – especially as it takes an increasingly large share of households’ income.

The basic cost of energy lies at the cost of it coming out of the ground, refining it, distributing it and the rate of the pound against the US dollar.

Those elements are beyond the control of the government, but what is within the government’s control is the levies and taxes that are charged and, to a lesser extent, the profits of the energy companies.

Much has been made of freezing energy prices for 20 months after the next election, but Ed Miliband, proposing this idea, has not shared with us how he justifies enlarging provider’s profits should the wholesale price of energy fall (presumably this is a quid pro quo for taking the hit if energy prices rise).

However, in the meantime, there is a fair amount the government is currently doing to keep prices down.

Petrol price increases have been cancelled from the last government’s plans and so petrol is 15p a litre cheaper than it would have been.

The Energy Bill passing through parliament will compel providers to put consumers on the cheapest tariff they offer, so not luring loyal customers into more expensive options.

The government is looking at alternative ways of extracting natural gas that may do to the UK what has happened in the US where gas prices are a fraction of what they are here.

Whilst the solution is partly to do with supply, demand is also key. The government is pushing the Green Deal, allowing homes and businesses to make energy efficient improvements paid for from cost savings on bills. This is mirrored by the Energy Company Obligation where suppliers subsidise energy saving home improvements.

Some of the levies charged on energy goes on alternative sources of renewable energy. It is important that we spread the cost of energy amongst a variety of sources and that includes nuclear, an announcement of which was made earlier this week with the Chinese / EDF investment into Hinkley Point.

And as if by an almost divine piece of coincidence, there is an energy-saving show on at Kidderminster Town Hall this Saturday, from 11am.

Getting energy costs down is about both supply and demand and making our homes more efficient is part of it.

Energy costs are high, and taking up an increasingly large part of all our income. But to tackle it, there has to be a wide variety of solutions.

CONTACT YOUR MP

  • Email: mark.garnier.mp@ parliament.uk
  • Telephone: 020 7219 7198 or 01562 746771.
  • Write: 9a Lower Mill Street, Kidderminster, DY11 6UU, or House of Commons, Westminster, London