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Customers 'sceptical' about price hikes - 22/08/2011

Now that British Gas' price hike has come into effect, millions of domestic energy customers will be paying almost £200 a year more on their energy bills.

ScottishPower’s price rise kicked in on 1st August. As a result of these prices, more people could be pushed into fuel poverty, Consumer Focus has pointed out.

Hannah Mummery, energy expert at the consumer champion, pointed out: "With wholesale prices a third down from their peak and energy firms reaping healthy profits, many hard-pressed consumers will be sceptical about the need for such big rises."

Ms Mummery noted that customers need to know that all the energy suppliers' prices are fair and that the energy market is competitive and working in their interests, which is where Ofgem should step in.

If the watchdog cannot do this, it must refer the matter to the Competition Commission, she added.

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