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Ofgem study clears 'big six' energy firms of price fixing
Jonathan Prynn, Consumer Affairs Editor6 Oct 2008
Britain's big six energy suppliers have been cleared of allegations that they are operating a cartel.
A seven-month inquiry into the companies - British Gas, Eon, npower, EdF, Scottish Power and Scottish & Southern Energy - found "no evidence" they were colluding to rip off consumers.
Watchdog Ofgem launched its investigation after all the companies raised their prices within a few weeks of each other. It trawled through internal emails and minutes of meetings for signs that the companies were talking to each other about price setting but says it was unable to find any.
However, Ofgem did find that the worst-off four million consumers are missing out on the benefits of energy competition. It has ordered a clampdown on high price differences between customers on pre-payment meters and those paying by direct debit.
Ofgem chief executive Alistair Buchanan said: "Initial findings give us grounds to demand that companies end practices that hinder customers from getting the best deal. But we have found no evidence of a cartel."
Reader views (3)
The price of oil has come down alot so why have'ent the power bills come down? When oil goes up in price power bills go up but when the oil prices come down the power companies still keep their obscene profits.Who said they don't operate a cartel?
- Stan White, leeds, 07/10/2008 05:59
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Does OfGem think we are all stupid? Clearly it does. The sad thing is we cannot do anything about it. In any sensible and thinking country, people would have been out on the streets, but not here in civilised GB!!! Bend over Britons, here it comes again!
- Kerry Trubee, purley, 06/10/2008 18:03
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thank god for Ofgem looking after all the consumers interests so thoroughly. We have found no evidence of a cartel but I look forward to spending time in my new villa I recently acquired...alledgeldy
- Stuart, london, 06/10/2008 14:29
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