19 December 2008
The leader of the House of Commons has said that the government is prepared to legislate if energy companies fail to reduce their prices.
Harriet Harman told MPs that gas and electricity providers may be forced to cut bills in line with reductions in oil prices and wholesale costs if they do not do so voluntarily.
Standing in for Gordon Brown at prime minister's questions, she said energy companies must treat all consumers - both businesses and domestic gas and electricity users - fairly.
"If they don't, it won't just be Ofgem and the Competition Commission they'll have to worry about. We will change the law to force them to do it," she insisted.
Paul Golby, Chief Executive of energy company E.ON UK, said recently that gas and electricity providers are unlikely to pass on wholesale price reductions in full to their customers.
He explained that they need to protect their profit margins in order to invest in renewable energy and meet the government's targets in this area.
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