GMB call for energy bills to be capped as new union study shows price increase of up to 32% for electricity and 26% for gas

GMB, the union for workers in the energy sector, is calling for Energy bills to be capped as a new study shows that electricity price increases of up to 32.3% and gas prices of up to 26.4% have been implemented in the last few months.

GB Energy has increased electricity prices by 32.3%, Flow by 18%, npower by 15%, SSE by 14.9% and E.ON by 13.8%.

GB Energy has increased gas prices by 26.4%, LoCO2 by 9.9%, First Utility by 8.8%, Bristol Energy by 5.9% and npower by 4.8%.

The table below shows how much electricity and gas prices have increased over the last 4 month:

Justin Bowden, GMB national secretary for Energy said: 

"The pantomime that passes for UK energy policy and energy bills regulation continues.

"GMB has always ridiculed the very idea of a competitive market in a natural monopoly because it is a contradiction in terms that we all pay for through our energy bills.

“Ofgem has been a purring pussycat for years and should be abolished with all its regulatory functions taken over by the government itself making its regulatory role subject to scrutiny and accountable to parliament with the powers to cap prices if deemed necessary.

“The regulator had powers to cap prices after the industry was privatised but when the so-called 'free' market was introduced into a natural monopoly the regulator lost the powers and the big six were given a free hand.

"We know what happened next."

Gary Smith, GMB Scotland Secretary said:

"The argument that energy companies are fixing prices doesn't really stack up.

"The Competition Markets Authority reported in July 2015 and did not suggest there was price fixing.

“The behaviour of some energy companies - especially the smaller ones - with frequent eye-watering increases, suggest companies are in real trouble [see table above].

"When small energy companies go bust it hits consumers and Ofgem then has to find a company to take on those consumers' accounts.

“The introduction of competition was supposed to deal with the problems in the energy market and drive down prices.

"The strategy clearly isn't working. Wholesale prices have been volatile and it is leaving small companies vulnerable.

"The volatility was driven in part by damage to the interconnetor to France and by problems in the French nuclear fleet.

"This further highlights concerns over security of supply and energy self-sufficiency.

"Another question that the government will need to address is where investment is going to come from for new power stations?

"Margins are already very tight and are set to get worse.

"GMB Scotland is also concerned that energy companies could respond by cutting jobs and offshoring even more work." 

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