Consumer Focus calls for energy bill probe

26/11/2009

Pressure is growing for a Competition Commission review on how customer energy bills are set.

Consumer Focus, a campaigns group, said today that the probe should look into the relationship of wholesale fuel prices and consumer costs.

An Early Day Motion calling for the review has also been launched by John Grogan MP.

Gas and electricity suppliers buy their fuel at market prices and then sell it on to customers.

The energy markets have fallen significantly since the price spike of summer 2008 - but some analysts have criticised the firms for not passing on these declines in energy bills.

Figures from Consumer Focus suggest that gas bills rose by 51 per cent last year but have fallen by just six per cent this year, while electricity rose by 28 per cent and then fell by eight per cent.

Robert Hammond, energy expert for the group, said: "A truly competitive market would ensure that when energy companies pay less to supply energy, customers pay less to receive it.

"Yet none of the big six energy companies are breaking ranks and passing on lower wholesale costs to their mainstream customers."

The typical annual energy bill for a UK household comes to over £1,200.

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

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