Click here to listen to the interview in MP3 format

Labour MP Jim Devine speaks to ePolitix.com about why he would support a windfall tax on energy companies.

Question: On Wednesday Alistair Darling will deliver his first Budget. Will regulation and voluntary codes be enough to help tackle fuel poverty or would you support a windfall tax on energy companies?

Devine: I think what we need to do is to look at a practical way of tackling fuel poverty in the country. We know that these companies who tell us that they haven't acted as a cartel but have miraculously all appeared to have increased their prices by the same amount. Now while supplying prices have gone up, there is a gap of about £1.7bn between what they are now claiming collectively for their profits.

The latest figures for most of these companies have shown record profits. I suppose clearly that should be taxed.

I think that if we do impose a windfall tax, what I would like to see is the commitment to pensioners, for example, where we do the winter heating allowance of £200, I would like to see that go up to £300 or even £400 so that the money comes off the companies but goes directly back to the people who are most in need of an increase.

Question: What action do you think the government should take on pre-payment meters?

Devine: This is an issue that's costing my constituents and others throughout the United Kingdom money and it's just ridiculous that people have to pay up front before they're getting the service that's being provided. Most banks, electric power companies, they are very very intolerant of customers who are late with payments and such like. They seem very quick to send very threatening letters which, to you and I, we may be able to challenge but to an old age pensioner can be very very frightening.

Question: Do you think Ofgem is doing enough to regulate energy companies and ensure they pass cost-savings on?

I think they've reacted to the groundswell that's prevailed throughout Parliament and throughout the country. I don't think they were doing enough at the start of what is clearly a scandal and is a rip-off of consumers of energy right throughout the United Kingdom. If the regulatory body can't deliver some input into reducing these prices then clearly, we need to look at the legislation as it's presently constructed.

Can consumers exercise a genuine choice in the energy market?

Devine: I think that's a nonsense argument. If the company you're with at the moment increases its costs by 15 per cent, then you move to some other company and they very, very quickly do it. I think there was figures showing that something like 70 per cent of people have not moved around the market, and in particular, that figure goes up to over 90 per cent when we're talking about pensioners and the elderly.

What else do you think the government can do to stop domestic bills increasing further?

Devine: I come from an old Labour tradition and when I say old, I don't mean that in ageist terms, I mean that in political terms. These companies need some sort of direct accountability I believe, to Westminster. We're obviously not going to take them back into public ownership but there clearly needs to be more scrutiny and more control from the legislators here in Westminster.