Why the energy giants fail to pass on savings

The Campaign for Public Ownership has issued the following press release explaining why we shouldn’t be too surprised:

Here we go again. A newly published report by the watchdog Consumer Focus says that Britain’s privatised energy companies are over-charging customers and failing to pass on billions of pounds of savings made from the falling price of gas and electricity, it is reported. Consumer Focus states the fall in wholesale prices has saved energy companies around £1.6 billion, but this has not been reflected in average domestic bills.

Energy bills rose by 42% last year, with the average household paying £1,293 for the year.

The Campaign for Public Ownership believes that the only long-term solution to the problem of energy company profiteering is to restore the energy companies to public ownership.

The problem lies in the ownership structure of the energy companies. All of them are Public Limited Companies, whose overriding aim is to maximise profits for shareholders. That’s what PLCs do. Instead of reacting with horror to the entirely predictable news that PLCs are putting the interests of shareholders before Britain’s long-suffering energy consumers, we should instead be calling for the government to take the one step that will lead to lower energy prices in the long term. Restoring the energy companies to public ownership will mean that prices can be lowered, as there will be no shareholder dividends to pay.

THE CAMPAIGN FOR PUBLIC OWNERSHIP
Interviews and all media enquiries:
Email: publicownership@hotmail.co.uk

The Campaign for Public Ownership is a newly formed cross-party organisation which aims to harness public dissatisfaction with privatisation and campaign for a reversal of the disastrous policies of the last twenty-nine years. The Campaign seeks to expose the cost to the public of privatisation, and highlight the inefficiencies and profiteering of the privatised companies. We also strongly urge that the British government does not give a penny of taxpayers money to a privately owned company without the public receiving equity in that company. The Campaign will seek to counter the negative propaganda about public ownership put about by those with a vested financial interest in privatisation. It’s time to bring to an end to the Great Privatisation Rip-Off.
http://campaign4publicownership.blogspot.com/

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