11 January 2007
A report from the European Commission (EC) into the state of the energy sector within Europe has revealed that more must be done to ensure the sustainability and competition within gas and energy suppliers.
One of the main benefits of sustainability within the gas and electricity areas is that it will keep the prices for these utilities down for consumers, but EU officials warned yesterday that households would see the prices rise in the short-term while renewable energy sources were set up.
Competition within the industries was highlighted as one of the main target areas as this also affects the amount that consumers pay for their bills.
Ann Robinson, director of consumer policy at the prices comparison and switching website uSwitch.com, commented: "Lack of competition in Europe has had a serious impact on consumers in this country. In 2006, consumers paid an estimated £1 billion extra because expensive gas had to be taken out of storage.
"Had a proper European market operated, then gas would've flowed in from the rest of Europe and prices would have been lower for UK consumers."
Ms Robinson also called for the EC to make the most of its powers under antitrust rules and merger and state aid control regulations, adding that "it's encouraging to note that the Commission has made it clear that it is willing to forcefully pursue any infringements of competition law in the energy sector."