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Many energy bills 'unjustified' | Many energy bills 'unjustified' |
(about 23 hours later) | |
Gas and electricity customers may be paying hundreds of pounds a year more than is justified, a former energy consumer chief has said. | Gas and electricity customers may be paying hundreds of pounds a year more than is justified, a former energy consumer chief has said. |
Former Energywatch chief executive Allan Asher told BBC File On 4 that annual bills of around £1,200 could be cut by a third or more. | Former Energywatch chief executive Allan Asher told BBC File On 4 that annual bills of around £1,200 could be cut by a third or more. |
He said more vigorous competition between energy companies and reformed wholesale markets would reduce bills. | He said more vigorous competition between energy companies and reformed wholesale markets would reduce bills. |
But suppliers say customers are already benefitting from competition. | But suppliers say customers are already benefitting from competition. |
Mr Asher, who was head of Energywatch for five years until it became part of the new consumer watchdog Consumer Focus in September, argued that household dual-fuel bills could be cut by £300 to £400 with tougher regulation and market reforms. Find out more Listen to File On 4, Radio 4 Tuesday 21 October 2008 2000 BST, repeated Sunday 26 October 1700 BSTOr catch up at Radio 4's Listen Again site | Mr Asher, who was head of Energywatch for five years until it became part of the new consumer watchdog Consumer Focus in September, argued that household dual-fuel bills could be cut by £300 to £400 with tougher regulation and market reforms. Find out more Listen to File On 4, Radio 4 Tuesday 21 October 2008 2000 BST, repeated Sunday 26 October 1700 BSTOr catch up at Radio 4's Listen Again site |
He said the level of household bills depended more on the capacity of the big companies to extract money from consumers than on the underlying costs of the industry. | He said the level of household bills depended more on the capacity of the big companies to extract money from consumers than on the underlying costs of the industry. |
The energy markets are already under investigation by the regulator Ofgem but Mr Asher wants a probe by the more powerful Competition Commission. | The energy markets are already under investigation by the regulator Ofgem but Mr Asher wants a probe by the more powerful Competition Commission. |
"The powers of the Competition Commission are clearly greater than those of Ofgem," he said. | "The powers of the Competition Commission are clearly greater than those of Ofgem," he said. |
"They have the capacity - in fact they're waiting for just a reference and it's scandalous that it hasn't been made yet." | "They have the capacity - in fact they're waiting for just a reference and it's scandalous that it hasn't been made yet." |
The Energy Retail Association said: "Mr Asher doesn't provide enough detail to explain how he arrives at this judgement." | The Energy Retail Association said: "Mr Asher doesn't provide enough detail to explain how he arrives at this judgement." |
It said a recent Ofgem investigation had concluded that "customers are benefitting from vigorous competition and suppliers compete on price and quality of service to win customers". | It said a recent Ofgem investigation had concluded that "customers are benefitting from vigorous competition and suppliers compete on price and quality of service to win customers". |