6th October 2008
Energy regulator Ofgem has warned the industry to improve its competitiveness, but found no evidence of a cartel.
The news comes on the release of the initial findings of the Energy Supply Probe, which focuses on competitiveness in the domestic and SME gas and electricity supply markets.
It follows numerous calls from business organisations about small firms being left unprotected by the demise of watchdog Energywatch, which has now become part of Consumer Focus.
The study found that while the existing supply works well for most customers, others were missing out on the benefits of competition, It highlighted the 4.3 million customers without a gas supply, who do not have access to the best deals.
And Ofgem warned it would refer companies to the Competition Commission if they did not respond to a range of reforms proposed by the regulator, including a ban on unfair price differences between those who pay by direct debit, pre-payment metres, or standard credit.
In addition, the probe found that customers were aware of the wide range of prices and were prepared to switch suppliers if they are unhappy with their existing supplier.
Ofgem launched the study in February 2008, and there will now be a consultation period which will end on 1 December.
Ofgem chief executive officer Alistair Buchanan said: "These are hard times and we are taking a hard line on behalf of disadvantaged consumers."
IMAGE[/br]PA
Energy industry warned to improve competitiveness
The news comes on the release of the initial findings of the Energy Supply Probe, which focuses on competitiveness in the domestic and SME gas and electricity supply markets.
It follows numerous calls from business organisations about small firms being left unprotected by the demise of watchdog Energywatch, which has now become part of Consumer Focus.
The study found that while the existing supply works well for most customers, others were missing out on the benefits of competition, It highlighted the 4.3 million customers without a gas supply, who do not have access to the best deals.
And Ofgem warned it would refer companies to the Competition Commission if they did not respond to a range of reforms proposed by the regulator, including a ban on unfair price differences between those who pay by direct debit, pre-payment metres, or standard credit.
In addition, the probe found that customers were aware of the wide range of prices and were prepared to switch suppliers if they are unhappy with their existing supplier.
Ofgem launched the study in February 2008, and there will now be a consultation period which will end on 1 December.
Ofgem chief executive officer Alistair Buchanan said: "These are hard times and we are taking a hard line on behalf of disadvantaged consumers."
IMAGE[/br]PA
Tags: Regulations
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