Tories’ failure to take action on the broken energy market

The Tories constantly talk about action to fix the energy market. Month after month they issue press releases and give speeches in which they say they will stand up for consumers. But the reality is nothing ever happens. 

Promises of action:

• ·         In their 2015 manifesto the Tories pledged to “keep your bills as low as possible”:

“Our commitment to you: keep your bills as low as possible and promote competition in the energy market”

Conservative Party, 2015 Manifesto

• ·         Theresa May recently called for action, saying the energy market is “not working for all consumers”.
  
  

“One market that is manifestly not working for all consumers is the energy market.”

Theresa May, Speech to Conservative Welsh Conference, 7 March 2017

• ·         This is only the most recent example of her saying that the energy market is “not working”, she has done so multiple times in the past.
  
  

“we have said that where we think markets are not working, we will look at any measures that are needed—and the energy market is one of those we are looking at the moment.”

Theresa May, Prime Ministers’ Questions, Hansard, 6 February 2015, Column 428

“It’s just not right that two thirds of energy customers are stuck on the most expensive tariffs.”

Theresa May, Speech to Conservative Party Conference, 5 October 2016

• ·         Other Tory ministers have spoken of the need to tackle energy bills:
  
  

“It is also important to bear down on consumers’ bills”

Jesse Norman, Hansard, 22 March 2017, Column 13

“The Government are firmly focused on getting the best deal for energy consumers and on ensuring that the market works for everyone.”

Jesse Norman, Energy Prices Debate, Hansard, 16 March 2017, Column 602

“For too long, too many customers have been left on poor-value deals.”

Jesse Norman, Energy Prices Debate, Hansard, 16 March 2017, Column 602

“Sometimes, the market does not deliver the outcome the text books suggest it should. And when that happens, this government will not hesitate to intervene. We will shortly bring forward a green paper on protecting the interests of consumers.”

Phillip Hammond, Spring Budget, Hansard, 8 March 2017, Column 816

“we will not be afraid to intervene where there is evidence of market failure. We will look carefully over the coming months at the functioning of key markets, including the retail energy market, to make sure they are functioning fairly for all consumers”

Philip Hammond, Autumn Statement, Hansard, 23 November 2016, Column 909

“An economy that works for everyone must ensure that those with market power don't use it against consumers – and especially those most vulnerable to exploitation.”

Greg Clark, Speech to Conservative Party Conference, 3 October 2016

But no action follows:

• ·         Despite the repeated promises to act, they Tories never do. Energy prices have soared with increases leaving the average consumer almost £900 worse off since 2010[1].

• ·         Since January 2017,  five of the big six energy companies have announced price rises[2].

[1] https://www.gov.uk/government/statistical-data-sets/annual-domestic-energy-price-statistics Assuming gas usage of 15,000 kwh/year & electricity usage of 3,800 kwh/year

[1] http://www.bbc.co.uk/news/business-39577667
http://www.bbc.co.uk/news/business-38852517

http://www.bbc.co.uk/news/business-39253699

http://www.bbc.co.uk/news/business-39192297

http://www.bbc.co.uk/news/uk-scotland-scotland-business-38930236