Energy firms 'charge too much to some customers'

06/10/2008

Some gas and electricity charges in the UK are unfair, the industry regulator has said.

According to a new report from Ofgem, customers who get all their power through electricity are often paying too much.

Energy firms were also criticised for charging customers who do not use direct debit more - as well as those who use pre-payment meters.

In effect, these differing rates can be seen to disproportionately affect those on lower incomes, many of whom do not have bank accounts.

However, gas and electricity suppliers received some good news from Ofgem - who said that there was no evidence that they operated as a closed cartel and fixed prices.

"Initial findings from our energy market probe give us grounds to demand that companies end practices that hinder customers, especially the vulnerable, from getting the best deal," said Ofgem chief executive Alistair Buchanan.

"If they fail to satisfy our requirements voluntarily then we can move to a Competition Commission reference,"

Ofgem began its latest investigation into the energy firms in February, after all of the "big six" suppliers announced steep price hikes in their general tariffs within weeks of each other.

This had led some consumer groups to accuse them of being anti-competitive.

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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