12 November 2008
A group of MPs has suggested that it may be necessary to reintroduce price controls on energy to ensure households are protected from soaring utility bills.
The public accounts committee said the removal of such controls has "failed to generate the expected market pressures" that would benefit all consumers, InTheNews.co.uk reports.
Committee chairman Edward Leigh said elderly customers and families on low incomes have been hit hardest by rising gas and electricity prices.
This is because competition in the market is weaker than expected and vulnerable customers have been unable to access many of the cheapest deals.
"Consumers simply do not have the kind of good quality information needed to get the best deals on price and service," said Mr Leigh.
As a result, price controls may be needed to ensure consumer protection, the group said.
The Organisation for Economic Co-operation found recently that gas and electricity prices in the UK have risen almost twice as fast as those across the rest of the European Union.