The below Parliamentary question was asked by David Crausby on 2014-06-26.
To ask the Secretary of State for Energy and Climate Change, what steps he is taking to ensure that the recent reductions in wholesale gas prices available to energy companies are benefiting consumers.
In a competitive market, pricing decisions are a commercial matter for companies.
Consumers can put pressure on companies to reduce prices by switching to the best deal for them – Ofgem’s Retail Market Reforms to deliver a simpler, clear market combined with Government’s push to significantly reduce switching times and require suppliers to share consumer data with trusted third parties, should make this easier to do.
The Government supported Ofgem’s recent letter to the largest suppliers, challenging them to explain to consumers the impact of falling wholesale prices on their retail prices. Evidence that large suppliers raise prices more quickly when costs increase than they reduce prices when costs fall was one of the issues underpinning Ofgem’s recent referral of the energy markets to the Competition and Markets Authority.