Energy watchdog Ofgem has dismissed suggestions that the UK\’s six largest energy companies colluded to increase gas and electricity bills. The regulator has also demanded that those alleging price-fixing should produce the evidence.
They see large changes in market share, record switching between suppliers: signs of a highly competitive market. Yes, it\’s true, that prices are also moving in lockstep….but that\’s also a sign of a highly competitive market (when it isn\’t a sign of collusion). But some people are never pleased:
The Scottish National Party\’s Mike Weir called for the Competition Commission to investigate the companies, saying: "This statement displays an incredible complacency by Ofgem. It doesn\’t take Inspector Rebus to see that this same process happens every time there is an increase."
No, but it might take someone economically literate to see that a rise in taxation, a rise in compliance with green costs and a rise in feedstock costs will lead to a rise in bills to consumers. But here we\’re taking about a politician of course.