Despite pressure from the Chancellor, Alistair Darling, to probe the mechanics behind npower’s 17% price rises, Ofgem said they have no plans to refer gas and electricity providers to competitive authorities.
An Ofgem spokesman said:
‘Britain has one of the most competitive energy markets in Europe, with changing market share between the companies, price differences and good levels of switching’
He added:
‘We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour.’
This comes despite a Sunday Times/YouGov survey that found 89% of customers felt they were being ripped off by energy firms.
The price hikes have been blamed on increased wholesale prices, although the growing number of energy suppliers on the continent turning to the more liberalised UK market for cheaper supplies is thought to have driven UK prices also.
Chris Eagle, Commercial Manager at EnergyChoices.co.uk, is unfazed by this message:
‘The government is yet to meet with Ofgem to discuss the relationship between wholesale and retail prices. Once this has taken place, the landscape could change considerably. The Ofgem argument is sound, but it fails to explain why the huge profits that energy suppliers make are not being passed on to their customers’.
