Boilers - Ofgem launches energy market investigation

22/02/2008

Energy regulator Ofgem has launched an investigation into the domestic electricity and gas market after concerns were expressed by consumers about recent prices rises.

A number of major suppliers have imposed steep price increases since the turn of the year, prompting independent gas and electricity watchdog energywatch to call for a Competition Commission inquiry.

That has not materialised, but Ofgem's chief executive Alistair Buchanan admitted he is worried enough about the situation to look into it.

He told BBC Radio 4's Today programme there is real concern about whether the market is competitive and the recent price rises are genuine, as they have arrived in a very different pattern to last year's price cuts.

"All the companies have put their prices up at the same time - there appears to be a narrowing of the price offering for customers," explained Mr Buchanan.

He added that although there is currently no evidence to suggest the big energy companies are involved in a price cartel, action will be taken if the investigation discovers anything is amiss.