News — Energy prices
UK energy market to be investigated by the new competition watchdog
Competition and Markets Authority Energy prices Oligopoly Watchdog
This week Ofgem reported its findings on the state of the UK energy market, and concluded that there was sufficient evidence for a referral to the new Competition and Markets Authority (CMA), including excess profits, soaring prices (which increased by 24% between 2009 and 2013 – 10% above the CPI), and increasing consumer distrust. This assessment was jointly undertaken by Ofgem, the OFT and the CMA.
Energy prices
Npower announced today that it is following the lead of British Gas, the UK’s dominant gas supplier, by announcing that it is increasing both its electricity and gas prices by 9.1% and 8.8% respectively. This follows British Gas’s price increase of 6%. Consumer watchdogs immediately criticised the energy supplier’s decisions, pointing to the lack of competition in the energy market.