Ofgem issues energy price warning

Post by Kevin Jackson on 17th February 2012 in

Energy industry regulator Ofgem has warned that it could consider imposing a cap on energy bills unless suppliers do more to ensure consumers get a fair deal. 

The Independent reports that Britain’s “big six” utilities providers will be ordered to overhaul their tariff system – which has come in for particular criticism from consumer groups – this year, or otherwise they will be hit by stricter measures. 

“Parliament has given us the task of trying to create an effective market where competition is the downward pressure on prices,” Ofgem stated. “We think that's the way to go, although we haven't ruled out regulation, particularly for more vulnerable customers, if our reforms don't work.” 

French-owned utilities firm EDF Energy announced earlier this week that its annual profits had almost trebled to £2.5bn, while an estimated 5.5 billion British households are considered to be in fuel poverty. The average annual household energy bill has doubled since 2005. 

Earlier in the month, consumer campaigning group Which? joined forces with political activism organisation 38 Degrees to launch The Big Switch, a scheme intended to utilise collective bargaining to drive down gas and electricity prices.

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