UK: Age of cheap power is over

Nobody likes to see their household bills going up and Allan Asher, the chief executive of Energywatch, will have been widely cheered yesterday as he railed against a lack of competition in the industry.

He has a point. It is indisputable that competition in a market of six major players is unlikely to be as fierce as it would be with 20.

It would be good, therefore, to dismantle some of the barriers that make it tough for new suppliers to enter, particularly those that are trying to develop innovative businesses in renewable energy and microgeneration.

Much greater transparency over the prices paid in the wholesale power market would also allow consumers to understand the cost pressures these companies complain about so often – usually just a few weeks before they announce record profits.

Times of London