Agenda item

That this Council:-

(a)       is concerned that the average energy bills are soaring, up by £200 in the last two years and this Conservative-led  Government is out-of-touch, out-of-date and puts the interests of the big energy companies ahead of ordinary families and pensioners struggling with soaring energy bills;

(b)       believes that this is a big contributor to the cost of living crisis afflicting millions of families across the country, where many families, including in Sheffield, are having to choose whether to heat or eat;

(c)        is aware that the energy market is dominated by just six companies; in fact 99 per cent of households get their energy from one of the ‘Big Six’ who are all but one putting up their prices between 6-11% by the end of 2012;

(d)       understands that a lack of competition in the market means energy prices are higher than they might otherwise be, and notes that a recent report by the Institute for Public Policy Research suggests that with more competition in the market, bills could be as much as £70 less per year;

(e)       acknowledges that switching between energy suppliers reached its lowest ever level in the first quarter of 2012, and believes this is not because customers are happy with their energy providers, but rather because there has been a loss of faith in the energy market;

(f)         is not surprised that the Prime Minister’s announcement that the Government would legislate to force energy companies to put customers on their lowest tariffs unravelled within hours, noting that even consumer groups argued that it was unworkable and would destroy what little competition there is in the energy market, forcing prices up not down and believes this is  another u-turn by the Coalition Government who have proven that they do not think before they make announcements;

(g)       is disappointed that the Government’s Draft Energy Bill has nothing to help families struggling to make ends meet and believes that their only answer so far has been to say that customers are to blame for not shopping around enough and, at the same time as energy bills are rocketing, the Government has cut back the support it is offering to help people heat their homes;

(h)        regrets that this Government is not prepared to stand up to powerful vested interests, noting that they have backed business-as-usual in the energy market and refused to challenge the practices, pricing and structure of the energy market, and the need for urgent reform;

(i)         believes that the Government should change course and make reforms that would benefit hard working families in the UK, and that they should open up the market to greater competition and transparency by following Labour’s Real Energy Market Reform which:

(i)         would force the energy companies to pool the power they generate and to make it available to any retailer, in an attempt to open the market and to put downward pressure on prices;

(ii)        would abolish Ofgem and create a tough new energy watchdog with a statutory duty to monitor wholesale and retail energy prices, and the power to force energy suppliers to pass on price cuts when the cost of wholesale energy falls; and

(iii)       would require energy companies to put all over-75s on their cheapest tariff, which could save as many as four million pensioners as much as £200 a year from their annual energy bills;

(j)         supports the Labour Party’s Switch Together Scheme; and

(k)        welcomes that the current Administration is looking at options for a Council backed initiative on ways to support Sheffield residents to access cheaper energy tariffs through collective purchasing.

It was moved by Councillor Mazher Iqbal, seconded by Councillor Mick Rooney, that this Council:-

(a)       is concerned that the average energy bills are soaring, up by £200 in the last two years and this Conservative-led  Government is out-of-touch, out-of-date and puts the interests of the big energy companies ahead of ordinary families and pensioners struggling with soaring energy bills;

(b)       believes that this is a big contributor to the cost of living crisis afflicting millions of families across the country, where many families, including in Sheffield, are having to choose whether to heat or eat;

(c)        is aware that the energy market is dominated by just six companies; in fact 99 per cent of households get their energy from one of the ‘Big Six’ who are all but one putting up their prices between 6-11% by the end of 2012;

(d)       understands that a lack of competition in the market means energy prices are higher than they might otherwise be, and notes that a recent report by the Institute for Public Policy Research suggests that with more competition in the market, bills could be as much as £70 less per year;

(e)       acknowledges that switching between energy suppliers reached its lowest ever level in the first quarter of 2012, and believes this is not because customers are happy with their energy providers, but rather because there has been a loss of faith in the energy market;

(f)         is not surprised that the Prime Minister’s announcement that the Government would legislate to force energy companies to put customers on their lowest tariffs unravelled within hours, noting that even consumer groups argued that it was unworkable and would destroy what little competition there is in the energy market, forcing prices up not down and believes this is  another u-turn by the Coalition Government who have proven that they do not think before they make announcements;

(g)       is disappointed that the Government’s Draft Energy Bill has nothing to help families struggling to make ends meet and believes that their only answer so far has been to say that customers are to blame for not shopping around enough and, at the same time as energy bills are rocketing, the Government has cut back the support it is offering to help people heat their homes;

(h)        regrets that this Government is not prepared to stand up to powerful vested interests, noting that they have backed business-as-usual in the energy market and refused to challenge the practices, pricing and structure of the energy market, and the need for urgent reform;

(i)         believes that the Government should change course and make reforms that would benefit hard working families in the UK, and that they should open up the market to greater competition and transparency by following Labour’s Real Energy Market Reform which:

(i)         would force the energy companies to pool the power they generate and to make it available to any retailer, in an attempt to open the market and to put downward pressure on prices;

(ii)        would abolish Ofgem and create a tough new energy watchdog with a statutory duty to monitor wholesale and retail energy prices, and the power to force energy suppliers to pass on price cuts when the cost of wholesale energy falls; and

(iii)       would require energy companies to put all over-75s on their cheapest tariff, which could save as many as four million pensioners as much as £200 a year from their annual energy bills;

(j)         supports the Labour Party’s Switch Together Scheme; and

(k)        welcomes that the current Administration is looking at options for a Council backed initiative on ways to support Sheffield residents to access cheaper energy tariffs through collective purchasing.

Whereupon, it was moved by Councillor Penny Baker, seconded by Councillor Alison Brelsford, as an amendment, that the Motion now submitted be amended by:-

1.        the deletion of all the words after the words “years” in paragraph (a);

2.         the deletion of paragraphs (b) to (k) and the addition of new paragraphs (b) to (g) as follows:-

(b)       therefore supports the action the Coalition Government is taking to tackle fuel poverty, including:

(i)         reversing the previous Government’s planned cut to Cold Weather Payments, which are targeted at the most vulnerable;

(ii)        reducing fuel bills for 2 million families by up to £130 through the Warm Home Discount; and

(iii)       rolling out a ‘smart meter’ programme, which helps people save money and ensures energy companies meet demand more efficiently;

(c)        furthermore, understands that 13,000 homes in Sheffield are already benefiting from warmer homes and cheaper energy bills, thanks to the previous Administration’s Free Insulation Scheme;

(d)       keenly anticipates the Coalition’s Government’s Green Deal, secured by Liberal Democrats in Government and potentially the most ambitious insulation scheme in modern history;

(e)       notes that part of the Green Deal will be specifically designed to provide ‘Affordable Warmth’ to low income vulnerable households;

(f)         welcomes the decision to already grant Sheffield City Council £570,000 as part of the Green Deal scheme; and

(g)       calls upon the Cabinet Member for Environment, Waste & Streetscene to bring a report to the Council’s Cabinet detailing the Council’s planned actions to support the Green Deal.

On being put to the vote, the amendment was negatived.

It was then moved by Councillor Jillian Creasy, seconded by Councillor Penny Baker, as an amendment, that the Motion now submitted be amended by:-

1.         the addition of a new paragraph (a) as follows:-

(a)       believes any long term solution to the related problems of energy security, rising prices and carbon reduction must prioritise investment in energy efficiency measures and renewable energy generation;

2.         the relettering of original paragraphs (a) to (k) as new paragraphs (b) to (l);

3.         the addition of a new paragraph (m) as follows:-

(m)      requests the Cabinet to ring fence 50% of any financial benefit to the Council of such a scheme, to invest in energy efficiency and renewable energy generation.

On being put to the vote, the amendment was negatived.

The original Motion was then put to the vote and carried as follows:-