Government needs to reform “broken” energy market

The UK Government needs to reform the nation’s “broken” energy market. That’s the view of consumer group Which? that made the comment following energy supplier SSE’s “unavoidable” move towards increasing […]

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By Priyanka Shrestha

The UK Government needs to reform the nation’s “broken” energy market.

That’s the view of consumer group Which? that made the comment following energy supplier SSE’s “unavoidable” move towards increasing its gas and electricity prices by 9% starting October.

Richard Lloyd, Executive Director of the group said: “We can’t go through another winter with people worrying about their energy bills, the Government and the regulator must reform our broken energy. It’s time for energy prices to be properly transparent and tariffs to be made simpler so that consumers get a fair deal.”

The news follows UK energy suppliers announcing a rise in profits this year, with E.ON’s operation rising by 23.7% to £245million in the first six months and British Gas revealing a 23% rise to £345million.

Although E.ON announced it would not increase bills for customers this year, Scott Byrom, Energy Expert at MoneySupermarket.com fears SSE’s move could pave the way for other suppliers.

He said: “SSE is the first of the Big Six providers to announce price increases this season, leaving the doors wide open for the rest to follow suit. As a result of [the] increase by SSE, I expect a “domino effect” in the market as the other members of the Big Six providers follow suit to hike prices.”

SSE said it would not increase its prices again until the second half of next year.