9 January 2007
Conservative leader David Cameron has called for an investigation into residential energy prices as part of his pledge to help British consumers to "live life for less".
While criticising chancellor Gordon Brown for allowing utility bills to spiral out of control, Mr Cameron said that with gas prices rising by 71% and electricity costs doubling since 2003, pensioners in particular were facing "a significant decline in their quality of life".
Susan Kramer, the Liberal Democrat's spokeswoman for trade and industry, added to the debate, saying: "We have been highlighting for some time the double whammy for consumers when energy prices change. Energy companies seem happy to push consumer prices up quickly but reluctant to lower them when wholesale prices fall."
But Alistair Darling, minister for trade and industry, accused Mr Cameron of being opportunistic, stating that matters regarding the energy sector should be regulated by Ofgem and not by a political review.
Following the outbursts, Ofgem repeated earlier warnings that it could investigate if it felt the industry was not responding to falling prices, stating: "Ofgem has made its position clear since the summer that we do not expect suppliers to be left with jam on their fingers if the recent reduction in wholesale gas prices is maintained.
"If suppliers stopped competing on price or domestic prices did not fall following a reduction in wholesale prices, then Ofgem has said it will look closely at the market."