Labour conference: Ending vertical integration key to customer protection

Ending the vertical integration of the energy and water companies is the best way to ensure that customers are protected from poor deals, according to former shadow energy secretary Lisa Nandy.

Former shadow energy secretary Lisa Nandy

Speaking to Utility Week at the Labour Party conference in Liverpool, Nandy said that completely removing the link between the wholesale and retail arms of the energy and water companies will “make the market genuinely competitive and transparent”.

Building upon her “democratisation of energy” speech from last year when she was a member of the shadow cabinet, Nandy said ending the connectios between the wholesale and retail elements of the utilities would deal with the issue of a lack of competition.

“One of the problems is that we say we have a competitive market but we haven’t.

“If you look at the direction of travel across Europe, the answer is not pulling power back in – whether through states or private monopolies – it is about handing real power to customers.”

Nandy stated there needs to be an influx of genuine independent retailers which are not associated to the incumbents, as well as the development of social and cooperative energy companies to ensure customers get a good deal.

“It is not enough for ministers to stand up at the dispatch box and urge people to switch when actually the offer on the table is not good enough in the first place.”

Nandy also called on re-elected Labour leader Jeremy Corbyn and the government to ensure that the UK develops for the “job of the future” in green jobs, be encouraging research and development into new and renewable technologies.