The news source reported that Energywatch is expected to complain to an influential group of UK MPs, about what it believes is anti-competitive behaviour on the part of energy suppliers.
The watchdog is also expected to express its dissatisfaction with Ofgem, the UK energy regulator, as being irrelevant in ensuring fair market conditions, when it raises its concerns to the group of legislators.
Energywatch has expressed its concerns over ballooning utility bills, which have reportedly increased by 40% in three years, and are expected to rise even further in 2008. The consumer watchdog believes that the prices are around one-third higher than they would be in a competitive, transparent energy market.
The news source noted that a majority of the energy suppliers in the UK are owned by major European utilities. Energywatch has noted that around 90% of gas supplied to the UK comes by the way of obscure, long-term contracts, pushing wholesale prices higher than they would normally be.
Allan Asher, Energywatch’s CEO as quoted by the Observer, said: Prices are not being set by demand and supply. In this country we have an OPEC for gas.
