Firms told to justify Welsh energy tariffs

Mar 12 2008 by David Williamson, Western Mail

ENERGY industry bodies have refused to appear before an Assembly committee to explain why customers in Wales must pay higher prices than in England.

Representatives of suppliers have said they will not attend a session of the Sustainability Committee to answer questions about fuel poverty.

Members are now debating whether or not to subpoena witnesses.

Households in South Wales who pay for electricity by direct debit are charged an average of £409 a year, compared to just £379 on average across Great Britain.

Welsh families who use prepayment meters face an even stiffer financial penalty. Those in South Wales pay an average of £448, compared to £411.

A spokeswoman for energy watchdog Energywatch said, “We’ve been concerned for some time that the electricity prices in Wales are much higher than in the rest of the UK.

Historically, suppliers have said it’s to do with problems of distribution over certain areas of Wales.”

Energywatch has now commissioned its own research into the higher prices in Wales.

She said, “We think it’s only right that if customers are being charged more they should know why.”

Members of the Sustainability Committee said they were disappointed that industry representatives had chosen not to attend.

Labour member Alun Davies said, “We have powers to compel their attendance. There’s a part of me that says we should do this and force them to explain why people in Wales are being penalised.”

The Energy Retail Association, Energy Networks Association and Centrica were all invited to attend the committee in the Senedd.

Mr Davies said that while the UK Government had the responsibility to regulate the industry the Assembly had a role to investigate the higher energy costs in Wales.

He said, “These are businesses that have substantial bases in Wales and should be aware of the governmental framework.”

Plaid Cymru’s sustainability spokeswoman Leanne Wood AM said that the witnesses should be subpoenaed.

She said, “If these energy bosses refuse to attend the meeting, then it would be an appalling slap in the face for Welsh democracy. I think they should be forced to attend the committee.

“The Assembly has new powers to subpoena witnesses and we should use them if these executives continue to refuse to answer to elected representatives of the people of Wales. I can only assume that they are ashamed of their windfall profits.

“It is right that Assembly Members should be able to pose the difficult questions about why, for example, Welsh consumers are paying more for electricity than those in England.”

A Centrica spokesman said, “We’ve submitted written evidence to the committee which addresses the issues they want to look at. We don’t feel as an individual supplier we should go into the committee to discuss what’s really an industry issue.

“[We] didn’t think it was appropriate for us to be invited in isolation to discuss something that we didn’t feel was appropriate to discuss because it’s commercially sensitive.”

Russell Hamblin-Boone, director of the Energy Retail Association, said in a letter to the committee chair, “Our activity is not related to matters affecting competition between our members, and the ERA is not a forum for discussions as to energy prices or other commercially sensitive matters. Therefore I am afraid we cannot help you on this occasion.”

The Energy Networks Association has sent a briefing to the committee in which it claims electricity distribution charges typically represent 15-20% of a bill in Wales – a weekly cost of £1.15 to £1.35 to Welsh families.