Energy Secretary Greg Clark promises 'decisive' action on household bills

Energy Secretary Greg Clark has warned of "decisive" and "muscular" action against energy companies over rising household bills.

Greg Clark told the House of Commons Business, Energy and Industrial Strategy Committee that energy bosses had failed to change his mind about the need for action.

He said: "We'll publish our response to the CMA report very shortly and you will see… it will take very decisive action to address what even Ofgem the regulator has criticised as being prices that were difficult to justify."

The Competition and Markets Authority report was published in June and said that the UK's Big Six energy suppliers were overcharging customers by up to £1.4bn a year.

And last week, one provider EDF (Paris: FR0010242511 - news) hiked its bills for the second time this year with a 7.2% increase on top of an earlier 1.2% rise.

When pushed by committee chairman Iain Wright on why no action had been taken yet, Mr Clark denied he was delaying it.

He said: "The response we'll make will be muscular and will be strong and it will apply to all the companies that are disadvantaging consumers in this way."

When asked about a meeting with energy bosses in November, Mr Clark replied: "The explanations they gave me (for price rises) have not dissuaded me from the response we'll make as intended."

According to the CMA's two-year investigation, two thirds of households are paying over the odds for their energy compared with those who have switched suppliers.

It also warned that 70% of customers were on the more expensive "default" standard variable tariff.

Mr Clark said: "We are not simply going to note the findings - I think there is an overwhelming appetite to sort this problem once and for all."

But he also admitted: "These are separate independent companies, they need to make their own decisions... operating in a regulated market."

Earlier in the hearing, Mr Clark was asked if it was possible to cut VAT from energy bills but he said: "It's not something we've been actively looking at as a department".