Government urged to take 'three steps' on energy prices

• By E4B
• 20 June 2008
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The government has been urged by the UK's energy market watchdog to take "three immediate steps" on the issue of rising gas and electricity prices.

energywatch has stated that Westminster should lead a global initiative to remove the link between the price of gas and barrels of oil, which it claims is currently leading to energy selling for around five times the predicted production cost.

It also wants the Competition Commission to launch an investigation into how the energy market can be more efficient for customers, while it states that energy suppliers should be forced to offer their lowest prices to those in fuel poverty.

Allan Asher, chief executive of energywatch, said: "Rampaging oil prices are a serious and global contagion.

"That does not mean we should just take to our beds and hope that the fever will pass. Government can and should act in those areas where it can have an effect."

energywatch recently welcomed the government's plans to increase the amount of information available to consumers about green tariffs.