Tories call for gas price inquiry

http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/6240519.stm

Version 0 of 1.

The Conservatives have called on the Office of Fair Trading to investigate whether gas customers are being ripped off by high gas prices.

Party leader David Cameron said he wanted people to "live for less...starting with utility bills".

But the government called the comments "opportunistic" and "ill-thought out".

The average annual gas bill was £630 in October, up £300 from 2003. Meanwhile, British Gas customers who do not pay bills within 28 days are to be fined.

Energy regulator Ofgem advised households to switch suppliers to avoid the £5 penalty, which kicks in on 1 March.

Fair deal?

Mr Cameron said: "The cost of living for working people is going up and up and Labour just don't seem to care."

It was unclear whether people were being charged a "fair price" for energy, he said.

"We're calling on the competition authorities to investigate the utility companies to make sure people are getting a fair deal," Mr Cameron said.

Trade and Industry Secretary Alistair Darling told BBC Radio 4's The World at One that the Conservatives' energy policy was "ridiculous" and that decisions on prices should continue to be taken by the independent regulator.

He added: "We are taking action in the short term, but importantly we are taking action in the medium and long term - something that he [Mr Cameron] is not going to do."

Cowboy shame

Duncan Sedgwick, chief executive of the Energy Retail Association, said: "What we have here in the UK is the most independent, liberalised and transparent market anywhere in the world.

"An inquiry of this kind would achieve nothing whatsoever."

The Tories' Sort It website, which launched last year with a section on personal debt featuring an "inner tosser", has now been enlarged to include a page of links to other sites offering money-saving tips.

It also has a "name and shame" section where people are encouraged to name "cowboys" who have ripped them off.

Mr Cameron accused Chancellor Gordon Brown of putting pressure on families by increasing taxes.

He said taxation, utility bills, housing and the cost of goods and services such as plumbing and rail tickets had all risen since 1997.

He described Mr Brown as "the big spender" and said the Tories would split the proceeds of growth between extra spending and tax cuts.