'More information needed' on bills
8th July 2010
A watchdog poll claims that consumers want more transparency over gas and electricity prices, amid claims from suppliers that wholesale costs are to blame for soaring bills.
The consumer group survey revealed that 90% of people want more information about how their energy bills are calculated.
The survey also found 83% of consumers want a Bank of England-style base rate for energy prices. This would allow them to compare their tariff and see whether they are getting a good deal, and if not, how to get cheap gas and electricity.
However, the group warned that such a measure would not be much use without greater clarity over how wholesale prices are set.
This is especially true because many energy companies generate the energy they supply to customers.
It says that Ofgem needs the power to scrutinise how these 'vertically integrated' energy suppliers - those that both generate power and supply individual customers - pass on generation costs.
The group has called for an end to "unsubstantiated and arguably misleading claims" about the link between wholesale and retail prices.
The Which? poll also revealed that many support a moratorium on tracker tariffs until consumers have the information necessary to verify and predict price movements.
Copyright © Press Association 2010
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