Friday 12 September 2014

Watchdog’s new campaign calls for ‘fair’ energy prices

A consumer watchdog has launched a new campaign calling for "fair" energy prices after its poll found a “shocking” lack of trust in suppliers’ charging practices.

It reveals just one in five people trust suppliers to charge a fair price for their energy and more than half (54%) find it difficult to compare energy deals. Only a quarter rate their supplier as good at offering them a fair price, Which? also found.

Its ‘Fair Energy Prices’ campaign is calling for a "credible, independent benchmark" or a "price to beat" which suppliers would compete against so consumers can trust the price they pay.

Richard Lloyd, Which? Executive Director added: "Meanwhile, energy companies should use simple pricing to increase confidence in the industry and boost competition by encouraging switching.”

The trade body for the energy industry insisted suppliers have simplified bills and make tariffs easier to compare.

An Energy UK spokesperson added: “The industry is on track to halve the time it takes to switch supplier by the end of the year and more and more smaller companies are entering the market so there are plenty to choose from."

Energy Minister Amber Rudd believes the Competition Market Authority’s current independent inquiry into the industry “will provide an opportunity to rebuild trust in the sector”.