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| Version 2 | Version 3 |
|---|---|
| 'Big six' bosses defend energy market competition | 'Big six' bosses defend energy market competition |
| (1 day later) | |
| Major company bosses have told MPs that the UK energy market is competitive and works well for consumers. | Major company bosses have told MPs that the UK energy market is competitive and works well for consumers. |
| The managing director of British Gas rejected claims that customers are overcharged and that the big energy suppliers restrict competition. | The managing director of British Gas rejected claims that customers are overcharged and that the big energy suppliers restrict competition. |
| Phil Bentley told MPs on the Energy Select Committee that the UK had "the lowest gas prices in Europe". | Phil Bentley told MPs on the Energy Select Committee that the UK had "the lowest gas prices in Europe". |
| However Eurostat figures show this was only true in the first half of 2011, but not the second half of the year. | However Eurostat figures show this was only true in the first half of 2011, but not the second half of the year. |
| The figures reflect prices, but not tax and they do not take account of consumption levels. So, the figures does not necessarily translate to bills. | The figures reflect prices, but not tax and they do not take account of consumption levels. So, the figures does not necessarily translate to bills. |
| Increase | Increase |
| The committee is sitting shortly after one supplier announced price rises. | The committee is sitting shortly after one supplier announced price rises. |
| SSE, which trades as Scottish Hydro, Swalec and Southern Electric, will increase its domestic gas and electricity prices by an average of 9% from 15 October. | SSE, which trades as Scottish Hydro, Swalec and Southern Electric, will increase its domestic gas and electricity prices by an average of 9% from 15 October. |
| It blamed the increases on the extra cost of using the gas and electricity networks and rising costs in energy wholesale markets. | It blamed the increases on the extra cost of using the gas and electricity networks and rising costs in energy wholesale markets. |
| Some 3.4 million gas and five million electricity customers will be affected. | Some 3.4 million gas and five million electricity customers will be affected. |
| Competition | Competition |
| Leading figures from all of the big six energy suppliers - British Gas, E.On, EDF, Npower, SSE and Scottish Power - defended how the market worked. | Leading figures from all of the big six energy suppliers - British Gas, E.On, EDF, Npower, SSE and Scottish Power - defended how the market worked. |
| They said that tariffs were being simplified and it was easy for consumers to look around suppliers for a better deal. | They said that tariffs were being simplified and it was easy for consumers to look around suppliers for a better deal. |
| "We give choice, there's lots of switching," said Mr Bentley. | "We give choice, there's lots of switching," said Mr Bentley. |
| However, two smaller suppliers represented at the hearings said that the big six were still benefiting from their customer base from the days before the industry was privatized. | However, two smaller suppliers represented at the hearings said that the big six were still benefiting from their customer base from the days before the industry was privatized. |
| Stephen Fitzpatrick from Ovo Energy claimed that competition was restricted because there were so few new entrants to the market. | Stephen Fitzpatrick from Ovo Energy claimed that competition was restricted because there were so few new entrants to the market. |
| "It is a £30bn market and nobody wants to enter it: that's the measure of competition," he told MPs. | "It is a £30bn market and nobody wants to enter it: that's the measure of competition," he told MPs. |
| There is a widespread fear the SSE price rise will spark a round of similar increases from other companies. | There is a widespread fear the SSE price rise will spark a round of similar increases from other companies. |
| A number of the bosses said that it was important that the number of tariffs available to customers should not be restricted, but that they were simple and transparent. | A number of the bosses said that it was important that the number of tariffs available to customers should not be restricted, but that they were simple and transparent. |
| MPs also heard that prices were set to increase in the coming years, so it was important to encourage customers to make the most of discounts that were available. | MPs also heard that prices were set to increase in the coming years, so it was important to encourage customers to make the most of discounts that were available. |