Energy companies try to block price probe
01/03/2010Energy companies are threatening to stop investing unless a planned inquiry into excessive prices being charged to households is called off.
The recession has seen debt caused by soaring utility prices increase sharply – and yet last week British Gas announced profits of £595 million for 2009, up 58 per cent from the previous year.
A recent report by energy watchdog Ofgem warned that an average dual fuel household tariff rose by £30 a month from November last year to February.
The energy companies' threat to stop investing if the Competition Commission's investigation goes ahead produces a double bind for consumers.
At the start of February, Ofgem warned that without £200 billion of investment to upgrade power plants, equipment and new supplies, British families could be looking annual energy bills of £2,000 by 2016.
But many commentators and debt organisations have condemned the big companies' threat as a way of keeping prices – and their profits – high, pointing to similar threats made two years ago when they last staved off a similar investigation.
Atlantic director Vance Parsons says they would "recommend that anyone who hasn't looked at energy switching to do so. We offer a whole of market comparison site at www.energyswitching.co.uk, which is free and easy to use. For those in financial difficulties then this may release disposable income to target debt problems."
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