Ofgem won’t act over claims of energy supplier rip off scams
January 21, 2008
According to a recent report nine out of every ten energy supplier customers with the UK’s biggest energy suppliers feels ripped off over energy charged, but despite these complaints the energy regulator Ofgem has stated that it has no plans to refer the ‘big six’ energy firms to competition authorities. Reports claim that Ofgem is not concerned over competition amongst the energy suppliers, despite the price hikes that are expected from energy suppliers over the coming weeks.
Npower has already raised its gas and electricity prices by a significant level earlier this month, and other major energy suppliers are expected to quickly follow suit. This move comes as a result of an increase in wholesale energy prices. Chancellor of the Exchequer, Alistair Darling, has arranged to meet up with the chief of Ofgem in a bid to get an explanation with regards to the price rises. According to a recent survey nearly 90% of customers felt that energy firms were ripping them off over prices.
One official from Ofgem stated: ‘There are no plans at the moment for a Competition Act referral. 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. We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour.’
The energy firms that form part of the ‘big six’ are British Gas, E.On, Scottish & Southern Energy, Npower, EDF Energy and Scottish Power. Energy watchdog Energywatch wants these firms to be referred to the Competition Commission following the Npower price hike and the threat of further hikes from the other suppliers.
Tom Smith
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