Enquiry into soaring gas and electricity bills launched
May 10, 2008
An enquiry has been launched by the energy regulator Ofgem into soaring gas and electricity prices in the UK, which have rocketed at the beginning of this year forcing an increasing number of households into fuel poverty. The government has also issued a warning to energy giants stating that it will be cracking down on any market abuse that is designed to boost profits. Business Secretary John Hutton said that action would be taken if anti-competitive practices were being used.
Hutton stated: ‘What is fundamental, not just in tackling the problem of fuel poverty in the UK but also making sure our energy system works well, is we have got a genuine, efficient, effective market.’
He has asked that anyone that has information or evidence of anti-competitive practices by energy firms contact the energy regulator Ofgem and pass the details on so that an investigation could be carried out.
In a recent deal made with energy firms the government has managed to get the energy giants to pump an addition £225 million into helping those on low incomes and the more vulnerable to pay their bills. According to government figures using these funds to offset bills could help to pull around 100,000 households out of fuel poverty.
Hutton also said: ‘Thanks to the cooperation of our energy companies the amount of money being spent on social programmes to help the poorest heat their homes is now set to treble. This is a significant boost to the billions already spent by Government and the energy companies and means we can now get this vital extra support to the people who really need it in time for the coldest months this coming winter. I do not underestimate the difficulties and anxiety that rising energy prices can cause but I believe that this extra cash, coupled with ensuring we have the most competitive market possible will help us towards our goal of eradicating fuel poverty in the UK.’
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