5 November 2008
Gas and electricity prices in the UK have risen almost twice as fast as the European Union (EU) average, according to new figures from the Organisation for Economic Co-operation and Development (OECD). Its report shows that UK consumers were faced with energy bill hikes of 29.7% this year, compared with 15% across the rest of the EU. In Germany bills have increased by just 12.2%. Responding to the figures, Ed Mayo, Chief Executive of Consumer Focus, urged gas and electricity suppliers to reduce prices for their most vulnerable consumers "at the earliest opportunity". He said: "The UK has a relatively free market, but the freedom to cut prices in the early years now seems to be the freedom to raise prices with impunity." However, a spokesman for the Energy Retail Association insisted that the OECD's figures do not take into account the fact that in the past the UK has enjoyed "historically very low prices" compared to the rest of Europe. Consumer Focus recently called on gas and electricity suppliers to urgently reduce their prices in line with declines in global oil prices.