'No collusion' over energy price rises in UK
British energy regulator Ofgem said today that there was no evidence that any of the recent gas and electricity price hikes are down to collusion between suppliers.
More than nine million customers with Npower and EDF have been hit with inflation-busting gas and electricity price rises this month – adding around £100 to average annual bills. The UK’s other major suppliers, such as British Gas, are widely expected to follow suit.
The soaring bills have led independent energy watchdog Energywatch to call for the UK’s main energy suppliers to be referred to the Competition Commission to assess any “structural failings” in the market.
However, Ofgem chief executive Alistair Buchanan, who together with chairman John Mogg met Chancellor Alistair Darling yesterday to discuss the market, said he had found no evidence of any anti-competitive behaviour between the firms.
He said that, instead, bills were being driven up by rising global energy costs.
Mr Buchanan said: “Ofgem wants to reassure customers that we constantly monitor the competitive market and regularly publish our analysis.
“Obviously, we look even closer during periods when prices are rising, but we have no evidence of any anti-competitive behaviour.
“We see companies gaining and losing significant market share, record switching levels and innovative deals.”
French-owned company EDF, which has 5.5 million UK customers, announced yesterday that it was upping gas prices by 12.9% and electricity by 7.9% from Friday.
Npower announced even bigger increases for its four million customers – 17.2% for gas and 12.7% for electricity – earlier in the month.
The hikes took the average annual dual fuel bill for the two suppliers to more than £1,000.
