Ah, the wonders of our privatised energy industry…
Recent price rises by gas and electricity firms are not justified and the Competition Commission should investigate, a watchdog has said.
Three energy companies have raised their prices by an average of 15%, affecting 27 million consumers.
Energywatch says it is impossible to calculate how much excess profit energy suppliers are making because they are not transparent about what they pay.
Allan Asher from Energywatch told BBC News 24 that the entire energy market should be reviewed by the Competition Commission.
He said: “The price rises we’ve seen are not justified.
“There’ll be more, but sadly the market is not working well and that’s leading to consumers paying much, much more than they need to.”
The UK market is dominated by six providers – Npower, EDF and British Gas are the companies which have recently raised their prices and rivals are expected to follow suit in coming weeks.
But Russell-Hamblin Boone from the Energy Retail Association insisted that the prices set by energy companies were fair.
“We have the most competitive market in the world, and it’s important to recognise that there are lots of additional costs as well as just the wholesale price cost that are now being incorporated into our bills,” he added.