Consumers pay price of failure to reform, says watchdog

Energywatch described the latest price increases by ScottishPower as further evidence that Britain’s energy markets and Britain’s energy consumers are paying the price of a failure to reform European gas markets.

The rise adds £67 to the average annual energy bill of a customer taking gas and electricity from ScottishPower and means that since 2003 the company’s prices have risen by 31.5% for gas and 28.2% for electricity.

Energywatch director of campaigns, Adam Scorer, said: “Consumers are again being hit with double-digit gas price rises while offshore gas producers can point to staggering profits. An effectively competitive market would not allow this to continue. British consumers need an accelerated reform agenda for the European gas market to stem the flood of cash out of British households and businesses.”

On the timing and impact of the price rises, he added : “That prices are going up at a time of year when energy consumption increases and forecasters are warning of a harsh winter is at best unfortunate. Energywatch urges all consumers to keep their bills in check by sensibly reducing their energy consumption, switching to cheaper payment methods such as direct debits and shopping around for a better energy deal.”

The Energy Smart campaign, run by Energywatch in partnership with the industry regulator Ofgem, aims to help consumers cut fuel bills. More information is available at www.energywatch.org.uk.