Enquiry launched into energy industry
February 13, 2008
An enquiry is being launched into the competition levels amongst the UK’s energy giants, with a committee of MPs looking into whether consumers across the UK are paying too much for their gas and electricity usage. The Business, Enterprise and Regulatory Reform (Berr) select committee will be investigating whether there is enough competition amongst the major suppliers – a move that comes after four of the UK’s leading energy suppliers announced dramatic hikes in the costs of gas and electricity usage.
The chairman of the committee stated: “The continuing controversy over energy prices is an issue that demands to be addressed. It is a complex but vital question and one that affects everyone in the country, individual consumers and households, small businesses and major energy users alike.”
The news has been welcomed by campaign groups, with one Energywatch official stating: “Energywatch has long voiced concerns that there are serious problems in the way the energy markets works, or rather doesn’t work. Consumers need this inquiry to provide some clear thinking about how this market lets consumers down and what needs to be done to fix it.”
The UK’s energy regulator recently carried out its own investigation into energy price rises from suppliers, and concluded that there was no evidence of collusion amongst suppliers. However, the regulator refused to refer the matter to competition authorities despite calls from campaigners.
Even the Chancellor of the Exchequer has become involved in the issue over rising energy prices, and told senior officials at Ofgem that he wanted to enter into discussion into why energy prices had rise, what the implications of the rises were, and what the future might hold for energy prices.
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