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Groups call for fresh energy market probe

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
24/03/2014

Consumer group Which? and the Federation of Small Businesses (FSB) have written to regulators asking them to urgently fix the “broken” energy market.

In a joint letter to the Office of Fair Trading, energy watchdog Ofgem and the new Competition and Markets Authority, the organisations said seven in 10 consumers are worried about energy prices and only one in five trust the energy companies.

The regulators are already reviewing whether there should be a full competition inquiry into the energy industry. Their findings are expected to be made public any day now.

Which? and the FSB said high energy bills are “a major concern for small and micro businesses, whose needs are more similar to consumers.”

The letter said: “It is clear that the energy market is broken and urgently needs fixing. Top of our concerns is the need to increase competition and to make trading transparent. For too long the lack of competition in the energy market has not been addressed. It is now time for radical changes that deliver an effective, competitive market that works for everyone, before the scale of this crisis worsens.

“We all want to see a transparent market where consumers and businesses alike can understand their bills, compare prices and switch easily. We want to see the presence of strong competition right across the industry drive affordable pricing that give everyone the confidence they are paying a fair price for their energy.”

Last month Ofgem published new rules which will see the six largest suppliers publish wholesale power prices up to two years in advance to provide smaller suppliers with the opportunity to trade and compete more effectively.

The regulator said the ‘big six’ – British Gas, SSE, Scottish Power, E.ON, EDF and npower – will have to trade fairly with independent suppliers, or face financial penalties.