29 July 2008
A group of MPs has warned that the rising cost of gas and electricity could not only push thousands of households into fuel poverty but could also harm the competitiveness of the UK economy. In a report, the Business and Enterprise Select Committee said that as well as putting a squeeze on domestic consumers, higher energy bills were also hitting businesses. Industrial gas and electricity consumers now face prices well above the level of their European competitors, the report pointed out. "If these price differentials are sustained, they will affect the competitiveness of the UK economy, and put many thousands of jobs in manufacturing at risk," it read. The committee has called on industry regulator Ofgem, the government and suppliers to address the issue of soaring gas and electricity costs. Ofgem needs to investigate the "very real problems" in the energy markets which are evident "at all levels", it said, while the government and suppliers must do more to help those struggling to pay their bills. The report comes after EDF Energy put up the cost of its gas and electric for the second time in six months. Electricity bills will increase by 17% while gas bills will rise by 22%.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.