14 November 2008
By Vivienne Russell Consumers are not benefiting from the removal of price controls from the energy and telecommunications markets, MPs said this week. Received wisdom is that removing price controls stimulates competition, encouraging suppliers to keep prices as low as possible to win customers, who can switch easily from one supplier to another. But the Commons Public Accounts Committee said on November 13 that in practice many consumers, particularly the oldest and poorest in society, were losing out. Chair Edward Leigh said: ‘Consumers simply do not have the kind of good quality information needed to get the best deals on price and service. It is very telling that, according to a National Audit Office survey, a quarter of electricity consumers who had switched supplier ended up paying higher prices.’ Leigh added that poorer and older people were least able to switch suppliers but would benefit most from this. ‘They have been exposed to huge increases in gas and electricity prices, far greater than in many other countries. ‘This committee highlighted some time ago the ludicrous situation that prepayment meter customers are discriminated against by being made to pay over the odds for their energy,’ he said.
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