October 7, 2008
Ofgem warns UK energy providers
UK energy regulator Ofgem has completed a seven month inquiry into the British gas and electricity supply market. In its findings the watchdog revealed that although it found no evidence of price fixing between the big six suppliers – Centrica, RWE,EDF, Scottish Power, E.ON and Scottish and Southern Energy - it was concerned that over 4 million British consumers are losing,on average, £55 per year because they are not benefiting from the best available tariffs.
Ofgem has announced that it will move to place a ban on, what it considers to be grossly unfair, differences in pricing. The organization added that there must be an end to the practice of charges being linked to different modes of payment and there must be more clarity in the way that energy price plans are presented to customers. Far too often, consumers do not fully understand what it is that they are signing up to.
Ofgem also warned the largest energy operators that the UK’s Competition Commission would be invited to launch a detailed investigation into the industry’s pricing structures if energy suppliers failed to implement their recommendations.