This article was written by By Nick Gutteridge, Political Correspondent and originally published in The Telegraph.
The energy watchdog must be given greater powers to crack down on firms hoarding customers’ cash while increasing their bills, a Tory MPs has said.
John Penrose, a former minister who helped draw up the price cap , said the current system of regulation was failing families feeling cost of living pressures.
He called for Ofgem to be given more teeth after The Telegraph revealed that gas and electricity companies are sitting on nearly £2 billion of users’ cash. At the same time, they are raising direct debit payments for customers who are thousands of pounds in credit, a Telegraph investigation found.
Critics have accused firms of effectively using the money as a cheap source of finance while many British households struggle to make ends meet.
“The costs of bankrupt energy firms, and of managing the risks of the failed energy price cap, are adding hundreds of pounds to everyone’s energy bills just when we can least afford it,” said Mr Penrose.“We need a reformed, tougher energy regime where firms can’t take customers for granted.”
The revelations came as the Government told families to close all their curtains at night to save on heating bills and cut the country’s energy usage.
A new TV advertisement, aired for the first time on Tuesday, spelt out how households can save hundreds of pounds a year through quick fixes.
Ministers are plugging the £19 million It All Adds Up campaign, which was previously vetoed by Liz Truss over fears that it was too “nanny state”.
Television channels began playing a 30-second clip from 9.30am, to be accompanied by similar radio broadcasts and billboards on buses. The advert tells the public: “This is a 30-second ad. That’s not long, but it is long enough to do something that could save you money on your energy bills.”
They include closing all curtains at night and using draught excluders on windows and doors, which could save up to £60 a year in lost heat.
Another tip is to reduce boiler flow temperature to 60 degrees, which does not affect the warmth of the home but cuts energy use by up to £100 a year.
Lord Callanan, the energy minister, said: “Simple steps can make a big difference to cutting bills while keeping homes warm and safe, and by launching this new TV advert even more people will be aware and the savings will keep adding up for UK households.”
It is part of a wider government commitment to reduce the UK’s energy consumption from buildings and industry by 15 per cent by the end of the decade. Rishi Sunak has said the fallout from Russia’s invasion of Ukraine has shown that Britain needs to make itself energy independent in the near future.