Market competition to be probed by energywatch

22 September 2006

There should be a full inquiry into energy market competition, according to industry watchdog energywatch.

It is demanding a full competition commission inquiry in order to fix the perceived lack of competition in the UK energy market.

Allan Asher, energywatch chief executive, said: "Major problems with electricity generation and upstream gas supply mean the UK energy market is anything but competitive.

"Until the problems are fixed consumers are going to remain the victims of this market failure.

According to energywatch, average annual gas bills have increased by 91% since 2003, while average electricity bills have surged by 58.3% also.

His intervention comes after Scottish and Southern Energy, the UK's third biggest power firm, said it would hold prices until the start of 2007.

He said the firm's decision to increase its tariffs was "as inevitable as it is lamentable".

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