ENERGY BILLS SET TO RISE AGAIN – SSE has announced a £111.00 increase to its customers which will push average energy bills for householders’ to over £1,500 a year.
Ministers are now calling on the public to seek out alternative tariffs in order to reduce their energy bills.
Many Ministers are admonishing the price hike by saying that householder’s are now facing a crisis by having to decide whether to eat or heat their homes.
The price hike by SSE is 8.2 per cent above inflation and it is likely the other major energy companies will follow suit within the next few days.
The increase in energy bills has once again added fuel to Ed Miliband’s proposal to freeze all energy prices until 2017; on the provision that the Labour Party is elected to power in the 2015 General Election.
However, conveniently Mr. Miliband didn’t explain his position as Energy Secretary during Gordon Brown’s tenure in that he had a number of chances to push the energy companies in restricting price rises and yet failed to do so.
SSE hit back at the criticism by blaming the rise on the Government’s ‘green taxes’. SSE, along with other energy companies, stated that the tax for developing alternative green fuels should not be levied at the energy companies but rather through general taxation.
Again looking back it was Ed Miliband who imposed the ‘green tax’ on the energy companies and therefore is partly responsible for the ever increasing cost of our energy bills.
Currently the wholesale price of energy has risen by 4 per cent this year. This increase equates to approximately half the energy bills we pay. According to Minister’s this increase should equated to a consumer price increase of approximately 2 per cent and not the 8.2 per cent imposed by SSE.
According to SSE the green tax has risen by 13 per cent this year and now makes up 10 per cent of the energy bills we are charged.
SSE went on to note that the amount that energy companies are charged to maintain and improve the national grid currently equates to around 25 per cent of the energy bills overall cost; which has increased by 10 per cent this year alone and much of the work required is directly related to the Government’s drive for green energy.
The stance from the energy companies is clear… If you want to attribute blame then it lays firmly at the door of Ed Miliband for it was he who devised and implemented the ‘green’ energy tax; therefore increasing energy bills.
The issue here is one of energy supply and sustainability at an affordable cost. Ed Miliband’s proposal to freeze energy prices is nothing more than a desperate plea for votes and such a plan would almost certainly set back developments in alternative energy sources by decades.
The National Gird just a few days ago announced that Britain could be facing major blackouts this winter due to EU regulations on energy emissions having an impact on our electricity reserves, historically 10 per cent, now reduced to 5 per cent as the EU restrict the burning of coal and other fossil fuels.
The truth is that we cannot develop alternative energy sources or repair, maintain and build new power plants unless funds are available to do so.
Is there a different way? That of course is debatable and long have the energy companies been vilified over their excessive tariffs but with the incessant increase in ‘green tax’ and legislation from the EU the only way the energy companies can continue to supply electricity is to increase prices.
Looking at the situation there appears to be fault on both sides with the energy companies blaming the Government and the Government blaming the energy companies.
It could be argued that the energy companies really do have consumers cornered and that we have little choice but to accept the increases.
However it remains clear that the increases to our energy bills have been brought about through taxation and the requirement to produce profits and if we are to find a cheaper energy alternative then it is almost certain that energy bills will continue to rise until such a greener and cheaper alternative is found.
I wouldn’t hold your breath for even if such alternatives are developed it is likely the energy companies will continue to rise prices and this, or any other Government, is unlikely to reduce tax on your energy bills.
More on this story… Daily Mail