Utility price hikes to be investigated
Published On 7 February 2008
A group of MPs is set to investigate the recent price increases that utility companies have passed on to their customers.The Business, Enterprise and Regulatory Reform Committee will carry out a full scale inquiry into the structure of the energy market.
This will look at whether the current market structure encourages effective competition in the retail markets for utilities, as well as the potential implications of growing consolidation in the energy market.
Peter Luff, chair of the committee, said: "The continuing controversy over energy prices is an issue that demands to be addressed.
"It is a complex but vital question and one that affects everyone in the country-individual consumers and households, small businesses and major energy users alike."
The decision to investigate utility prices was welcomed by consumer groups. Tim Wolfenden, head of home services at uSwitch.com, commented: "This announcement is very welcome. The industry has been haunted by allegations of collusion and anti-competitive behaviour which may cause consumers to doubt the benefits that switching can bring.
"Competition in the energy market is not a spectator sport - it will only ever work properly if both consumers and suppliers get stuck in. The deals are there, the savings are there - consumers just need to start taking advantage."
