More competition needed in energy market, report finds - 30/04/2012
More people should be encouraged to switch energy provider in order to get cheap gas and electricity to help drive down prices, a new report has found.
A study by the Institute for Public Policy Research (IPPR) observed it will be necessary for both members of the public and energy suppliers to boost competition and ensure the market works effectively.
At the moment, this is not the case, as 99 per cent of people in the UK obtain their gas and electricity from one of the Big Six providers, the study noted.
The IPPR also called for Ofgem to improve the way it regulates the market to help drive competition and ensure pricing is fairer for consumers, adding there are doubts over whether current proposed reforms will have the intended effect.
Adam Scorer, director of policy and external affairs at Consumer Focus, said the report raises important questions about the effectiveness of the UK's energy sector.
"We have long held concerns that the energy market needs to do more to increase competition and demonstrate prices are fair," he said, adding: "If suppliers are unwilling to do this, then we would call on Ofgem to intervene."
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