The average annual spend on domestic energy per household has now breached £1,200. Since 2000, consumers in Streatham and beyond have faced gas price rises of 100% and electricity price rises of 61%. At the same time, the main energy providers have seen their profits rise from £557 million in 2003 to over £3 billion now.

In an article on the Guardian newspaper’s website on 7 August 2008, Chuka wrote:
“Shell, BP and Centrica (which owns British Gas) reportedly made £1,000 every second of the day for the first six months of this year. To put this in context, what BP presently makes in profit every month is roughly equivalent to what my local council, Lambeth, spends on running local services every year.”

Every 10% increase in energy prices leads to an extra 400,000 people joining the 2.5 million already living in fuel poverty in Britain today. Chuka pointed out that people living in communities like Streatham, containing some of the most deprived wards in the country, “are being clobbered.”

So Chuka has called on the government to levy a windfall tax on the energy companies to help ordinary people. Commenting on why he supports this measure, he said,
“I am in the business of politics because I want to build a fairer, more equal, democratic and sustainable world for people here - I think this necessitates, amongst other things, government intervention where appropriate, which is I am calling for this measure.”
“The point is not to punish the energy companies – the winners in this situation - for their unearned fruits, or even that the increase in global fuel prices is their fault; the point is that those fruits should be spread more widely to relieve the burden on the many residents in Streatham, Brixton, Clapham, Tulse Hill and beyond who, faced with these huge price rises, are the loosers here.”

Chuka has said the windfall tax, in the short term, should be ring-fenced to immediately help those struggling with rising fuel bills and to ensure every home is insulated and energy efficient to the highest standards; in the long term, he thinks proceeds could also be invested in renewable energy production. If you agree with Chuka, you can join the campaign for a windfall tax on the energy companies by signing up by here (scroll down to the bottom).

Above, five local residents of Streatham say what they think about the proposal.

Jamie Audsley