Millions paying over the odds for energy

Millions of households are unfairly paying over the odds for their energy supply, a report by the industry watchdog has found.

Millions of households are unfairly paying over the odds for their energy supply, a report by the industry watchdog has found.

Ofgem said that 4.3 million people without gas supply were being "short changed" by their suppliers, forking out on average £55 a year by not having access to the best dual-fuel deals.

It added that millions more that do not pay by direct debit – including six million pre-payment customers – are being penalised to the tune of around £1.4bn a year.

Ofgem said in the initial findings of its seven-month probe into the energy market that it was looking at imposing a ban on unfair price differences. But the report found that while some consumers were missing out on the full benefits of competition, the market was working well for most.

It said it found no evidence of an energy supply cartel and that consumers have benefited from the greater choice since the gas and electricity market was opened up to competition ten years ago. The study was launched earlier this year following a series of hefty price increases in gas and electricity. There were concerns of price collusion after the big six suppliers hiked tariffs at the same time.

Ofgem confirmed that it found nothing to back-up these fears or that suppliers were quick to raise prices and slow to cut them. On the whole, consumers gave the market the thumbs-up, it said, but added that there needed to be a fairer deal for all customers.

The report flagged up a particular concern for electricity-only customers who are paying on average 10 per cent to 15 per cent more a year than those who are able to take advantage of dual-fuel discounts.

Recent articles

Info Message

Our sites use cookies to support some functionality, and to collect anonymous user data.

Learn more about IET cookies and how to control them

Close