Utility suppliers 'can inflate prices unless consumers switch'
Published On 16 May 2007
Consumer risk allowing major utility suppliers to keep prices high unless they act to keep prices down and switch to cheaper providers, a consumer watchdog has warned.The consumer watchdog Which? carried out research which found that nearly 50 per cent of households have never switched utility suppliers, despite significant media focus on the issue.
However, there were major regional differences in people's propensity to change supplier - those living in the north-west of England were most likely to not be with their original supplier. In contrast, just 20 per cent of households from the north of Scotland had ever switched utility supplier.
The report's authors, Stephen Davies, Cheryl Whittaker and Catherine Waddams Price, argue that the structure of the UK utility market means that it is easy for suppliers to keep prices high unless consumers act and switch to cheaper providers.
Chris Gardner from Which? agreed, saying: "While we encourage Ofgem to scrutinise the practices of energy suppliers, we also urge consumers to take control of their own position.
"By switching to better deals and capitalising on potential savings of as much as £500, consumers will support the evolution of a buyer's market."
Recently British Gas revealed that its price cuts since February have encouraged 900,000 to switch to the supplier for their utilities.
