Energy prices 'should be slashed'
Updated on 24 November 2009
Utility companies should be investigated to find out whether they fail to pass on price cuts to consumers, according to MPs and a consumer watchdog.
Labour MP John Grogan told Channel 4 News that he felt energy regulator Ofgem had "let the public down" by not acting on the issue of high utility prices.
Consumer Focus have said that the energy market is "bereft of competitive pressures" and says the "big six" utility companies should cut gas and electricity prices by 7 and 3 per cent respectively - in line with wholesale price decreases.
MP John Grogan and the group have now called on the Competition Commission to investigate. But Grogan told Alex Thomson that it was down to the regulator Ofgem to ask the commission to intervene.
"Backing this motion is the Conservative front bench, the Liberal front bench and like me lots of Labour Mps," he said.
"Given that whole sale prices have fallen by a half retail prices are very sticky this issue is going up the political agenda. The Competition Commission was set up by parliament as the ultimate investigator to whether a market is competitive or not and we should let them have a full look at the big six energy companies.
"There is nothing wrong with the Competition Commission. They need a reference – they can't investigate it unless its referred by the regulator Ofgem and i think there is legitimate criticism of the regulator that they have been sitting on this."
Asked if he thought Ofgem were doing their job Grogan said: "I think the public have been let down by Ofgem – but the minister, Ed Miliband, does have the power to make a reference and I think given the failure of Ofgem he should make that reference."
