SSE energy price cut move hailed by Minister » Environment » 24dash.com

Gas and electricity companies should follow the lead set by Scottish and Southern Energy and indicate that they are looking to bring down prices, Energy Minister Mike O'Brien said today.

Mr O'Brien said he was "pleased" at the announcement from SSE that they were hoping to pass on lower wholesale prices to customers in the new year.

And he said he would now be looking to other firms for a commitment that prices would be brought down to a "more reasonable level".

During the first Commons question time for the newly-formed Department of Energy and Climate Change, Mr O'Brien said wholesale gas prices had fallen by 22% over recent weeks but that price cuts took time to pass on because energy companies bought their supplies on the advance market.

He added: "But I'm pleased to say that this morning's newspapers reveal that Scottish and Southern have indicated - as we asked the companies to indicate - that they were looking at lowering their prices as soon as they could.

"I now look to the other energy suppliers to also give indications that they will be bringing down their prices to a more reasonable level."

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Mr O'Brien was responding to Labour's Judy Mallaber (Amber Valley), who asked what discussions there had been with gas and electricity firms.

Ministers had met with energy suppliers three weeks ago, he said, to emphasise that wholesale oil and gas prices had fallen and that people were concerned the cuts were not being passed on.

Labour's Lindsay Hoyle (Chorley) said: "When you met with Dick Turpin and the rip-off bill merchants, I hope you said to them: 'They are not on, the time has come for the windfall tax'.

"And did you also ask them why they failed to invest in storage capacity which is artificially keeping prices high for gas?"

Mr O'Brien said there was ongoing investment in gas storage and he was "very anxious" to see it brought on stream.

He added: "We have also given very strong indications to the gas and electricity suppliers that, particularly in the current economic climate and particularly when families are concerned about the bills and the way the economy is at the moment ... that bringing down energy prices is something that they have a responsibility to ensure they do as soon as they reasonably can.

"That's a very clear message, when we met with the chief executives, that we gave to them and we will not be satisfied if we think there is any delay in doing it."

Mr O'Brien also said he was looking to energy regulator Ofgem "to make sure they do their job".