Rising energy prices lead to investigation

 

May 12, 2008

The rising cost of gas and electricity usage in the UK has led to an official investigation being launched by the energy regulator, Ofgem, in order to find out whether anti-competitive practices are being used by energy giants. Earlier this year the major energy suppliers hiked up the cost of gas and electricity usage significantly, stating that the rising cost of wholesale energy meant that they had to raise their prices. The move is likely to send many more households into fuel poverty.

John Hutton, the Business Secretary, has stated that serious action will be taken if there is any evidence of anti-competitive practices being used within the energy industry. He has asked for information from anyone that is aware of any such practices being used by suppliers, and the government has warned energy giant that it will be cracking down on any suppliers found to be engaging in these practices. 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 went on to state: ‘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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Written by admin · Filed Under Energy, Utilities 

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