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Ofgem Announces Review of Energy Market

01 December 2010

Following the latest spate of energy price rises Ofgem has announced they will carry out a review on the market’s effectiveness to protect struggling consumers.

Their analysis shows retail margins have increased from £65 to £90 as a result of the recent price rises.

The review will investigate the facts behind these rises looking into energy companies’ newly available retail accounts to see if action is needed to protect consumers.

“The energy retail market can only be fully effective if consumers have confidence that the market is transparent and easy to take part in,” said Alistair Buchanan, Ofgem’s chief executive.

“Greater transparency in the market is good for consumers, investors and for the energy industry as a whole.”

There is a difference of £419 between the cheapest energy plan and the most expensive on the market, uSwitch research found.

“Consumers have experienced prices both falling and rising this year alone and this review should help them to understand the reason why,” commented Ann Robinson, uSwitch director of consumer policy.

The Big Six Energy Providers

E.ON was the last of the big six energy providers to bring out a new fixed price plan and was one of the best as their rates remain fixed until 1st March 2012.

This gives customers a 16 month price guarantee to help budget conscious households – with a plan of £1,041 a year.

ScottishPower hiked its energy prices by an average of 2 percent for gas and 8.9 percent for electricity and the average bill for a Scottish and Southern Energy (SSE) consumer following their price rises is £1,132 a year.

OVO is the cheapest on the market with a £993 a year bill but has price protection for only 12 months.  While British Gas and npower hikes keep bills above the £1,000 mark.

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