11 December 2008
Energy Secretary Ed Miliband's warning to gas and electricity providers has been given a cautious welcome by uSwitch.com.
The independent price comparison site said energy prices have become a "bone of consumer contention" and there is pressure on the government to act.
Mr Miliband said this week that ministers would be prepared to legislate if energy providers did not move to reduce gas and electricity bills.
Tim Wolfenden, energy expert at uSwitch.com, said his comments could act as a stick to "prod suppliers along the route of fairer pricing". However, he added: "Whether the government genuinely has the appetite to wade in if suppliers are seen to be dragging their feet remains to be seen."
The Chief Executive of energy company E.ON UK warned recently that while gas and electricity providers may be able to cut their prices next year, they are unlikely to pass on wholesale energy cost reductions in full.
This is because they need to protect their profits in order to invest in renewable energy.
Make sure you are not paying over the odds for your gas and electricity by comparing tariffs online now.