Make market energy prices clearer, Which? says

22/09/2009

Current rules relating to UK energy suppliers should change, a representative of Which? said today.

Clare Corbett, energy campaigner at the consumer group, said that more transparency in the sector was needed - and expressed doubts as to whether the market was truly competitive or not.

The comments were made following months of price fluctuations faced by energy customers, due to movements on the wholesale fuel markets.

Energy suppliers buy their gas and electricity at market prices and then sell them on to consumers.

However, Ms Corbett pointed out that these costs were not currently made public - leading to confusion over whether or not householders were overpaying on their bills.

"We don't know how well each supplier manages its wholesale costs, we don't even know what wholesale prices these suppliers face," she said. "We need transparency over these wholesale prices."

Industry regulator Ofgem wrote to the UK's "big six" gas and electricity firms in August, asking them to provide clarity on their prices.

Responding to the letter, market leader British Gas said: "Prices [are] likely to remain at historically high levels, and in fact [are] likely to increase as non-commodity costs rise ever upwards."

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

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