17 December 2008
uSwitch.com has applauded Ofgem over its threat to refer gas and electricity providers to the Competition Commission.
The independent price comparison and switching service said the warning is designed to "turn up the heat" on energy companies.
Ofgem said it will call on the Competition Commission to investigate energy pricing if providers do not respond appropriately to its proposals.
The watchdog has highlighted several areas where energy firms can ease the pressure on households struggling to pay their bills.
Action has already been taken with regard to prepayment meters, which has taken up to £300 million off bills. But Ofgem said it now wants to target an additional £200 million in price cuts for households who do not have access to mains gas.
"Now that Ofgem has identified what needs to be done to make the market work in the way intended, its biggest challenge will be to get the suppliers to buy into its remedies and to act upon them quickly," said Ann Robinson, Director of Consumer Policy at uSwitch.com.