July 4th, 2010Energy firms probed over price differences
Two UK energy firms are being quizzed and investigated by regulators over differences in prices in different parts of the country, according to recent reports. Questions are being asked over why the energy providers are charging a particular price in one part of the country and a different price in another part of the country.
Amongst the discrepancies that appear to have been picked up is the fact that the price that the companies are charging in areas where they need to compete more is different to the price being charged in other areas. According to reports the two energy firms, which have not been named, are being asked ’serious questions’ by the UK’s energy regulator, Ofgem.
Ofgem has stated that if an official investigation is launched following the initial questioning then the two energy suppliers will be named. It was announced last year that energy firms could not apply price differences for no reason and that any difference in prices for energy usage had to reflect differences in cost to the actual supplier.
These changes, which were brought in last year by Ofgem, resulted in many energy customers seeing their bills falling, and in recent months the prices for those that were using a prepayment meter had dropped impressively from £111 to £69.
Whilst the questioning of the two energy firms continues industry experts have suggested that consumers who feel that they are being charged too much on their energy usage look into switching to a different provider. Many are surprised to find that when they do this they can get their energy far cheaper than with their current provider.
Christine McGourty, director of Energy UK, said: “Suppliers compete across all payment methods and tariffs, so it is important for customers to shop around to make sure they are on the best deal.”