Government plans to cut red tape for smaller energy suppliers and therefore boost their chances of getting into the energy market do not go far enough, according to Which?.
Executive director Richard Lloyd commented: "We welcome efforts to reduce the regulatory burden on smaller suppliers, but red tape isn't the biggest obstacle to competition.
"If the government wants smaller suppliers to challenge the dominance of the Big Six companies then there must be a fundamental overhaul of the wholesale market so that new providers can buy the energy they need to supply large numbers of customers," he added.
Mr Lloyd's comments come after energy minister Charles Hendry announced plans to exempt energy suppliers with fewer than 250,000 customers from the Carbon Emissions Reduction Target and the Community Energy Saving Programme.
The minister said existing legislation, which required companies with as few as 50,000 customers to take part in both programmes, acted as a barrier to market entry and reduced incentives to grow.
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