18 October 2012

Cameron's crazy energy pledge needs disconnecting

I was glad to hear that Energy Secretary, Ed Davey, had distanced himself from David Cameron's idea that the government will legislate to force energy companies to put all their customers on the lowest tariff.

The only result of this would be to raise the cost of the cheapest energy deals across the board.

The fundamental problem in the energy sector is the fact that the big six companies act as a cartel - squeezing out any real competition, rigging prices and delivering super profits as a result.

What the energy bill should contain instead is a statutory cap of 10% of the market for any energy company - opening up the market to real competition and ending the oligopoly of the 'big six'.

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