Energy regulator 'too easy on suppliers'

03/06/2009

The energy regulator is not putting enough pressure on providers to price their products fairly, it has been claimed.

Confused.com called on Ofgem to release a strongly-worded report criticising the firms for offering customers poor value for money - and said that the watchdog was currently "lukewarm" in its treatment of them.

Energy prices have been hiked by roughly 40 per cent since the beginning of last year, despite a recent round of price cuts.

Movements on wholesale gas and electricity markets have been blamed by suppliers for the price trends.

Gareth Kloet, head of energy at Confused.com, commented: "Consumers have been waiting with baited breath for Ofgem to come out with a report slamming suppliers for ripping them off, but the wait continues.

"Ofgem's analysis actually shows the market is working, and after an aggressive start with the 'supply probe' last year, the regulator seems to be turning lukewarm on suppliers.

"While wholesale prices are falling, oil is on the rise again. Having been stung by a volatile market last year it's unlikely we're going to see any exciting price changes, in the short-to-medium term, from energy suppliers."

The average home is thought to pay over £1,200 a year on gas and electricity bills.

A report released by uSwitch.com yesterday suggested that best-buy deals were up to £185 cheaper than some standard energy tariffs.

Tags; Housing Debt and Bills, Retirement Money Problems, Credit Card Lifestyle,

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