Serious consequences for households over energy rises
September 20, 2008
According to an MPs committee the rise in cost of the usage of gas and electricity is set to have dire consequences for a huge number of households in the UK. Energy prices have rocketed twice this year, once at the start of the year and again just a few weeks ago, with some energy suppliers still to put up the cost of usage. Increases in wholesale energy prices have been blamed for the rises.
However, despite this the MPs committee could not find any evidence of collusion to try and keep energy prices high. The report was published just days after EDF became the first energy supplier to announce the second round of price hikes for the summer. The enquiry was started after energy prices soared at the beginning of this year by significant levels. The six energy firms are: Npower, EDF Energy, British Gas, E.On, Scottish Power, and Scottish and Southern Energy.
The report stated that “the UK’s energy markets are not functioning as efficiently as they should”. It went on to state: “Industrial consumers now face prices above European levels. If these price differentials are sustained, they will affect the competitiveness of the UK economy.”
A member of the committee said that the investigation was still ongoing despite no evidence of collusion. He said: “Just because we have found no evidence of collusion does not mean we have given the big six energy companies a clean bill of health - far from it. It is clear that there are very real problems in the energy markets at all levels … which need to be addressed.”
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