The UK's 'big six' gas and electricity firms are colluding to keep prices falsely high, an industry watchdog believes.
Britain's energy providers are operating like a closed cartel, an industry watchdog has claimed.
The UK's 'big six' energy firms, who have been dogged by rumours that they secretly collude to fix prices, have overseen an increase in cost of around 40 per cent for gas and electricity bills over the past three years. Energywatch believes that this rise is due to the companies' anti-competitive behaviour, a view which is to be repeated before the parliamentary select committee for business this week.
Figures from the watchdog also suggest that the price rises have led to UK energy bills being overpriced by around one third. Suppliers have blamed the hikes on the high wholesale costs of commodities on the global markets; Energywatch contends that 90 per cent of the gas sold in the UK come from long-term contracts that are less affected by market fluctuations.
Speaking to the Observer, newspaper chief executive Allan Asher - who is to address the MPs' committee this week - compared the behaviour of the 'big six' to that of Opec, the closed cartel of oil-producing countries.
"Prices aren't being set by demand and supply; in this country we have an Opec for gas," he commented. Mr Asher went on to criticise industry regulator Ofgem for being a "huge disappointment", and for failing to protect customers from the price rises.
Compare Gas & Electricity Suppliers via money.co.uk
