Big Six energy firms accused of running cartel by charging same prices as standard tariffs are within £2 difference
THE Big Six energy firms have been accused of running a cartel by charging almost exactly the same prices.
Their standard bills are all within £2 of each other and £4 of the new price cap.
SSE, Scottish Power, nPower and E-ON charge £1,133 for a home on an average gas and electricity tariff, according to smaller energy firm Bulb.
Meanwhile, British Gas charge £1,131 and EDF £1,132.
The average price charged by the Big Six, which dominate the market, is £1,133.
That is just £4 less than the new Ofgem price cap of £1,137, which came into effect this month.
Hayden Wood, co-founder of Bulb, said: “The price cap, which we support, was meant to be a maximum and not a target.
“It’s disappointing to see larger suppliers setting standard tariffs as close to the cap as possible, squeezing every last penny they can out of families.”
Meanwhile, Lawrence Slade, chief executive of trade body Energy UK, commented: “We have previously warned of the unintended consequences of price caps, including the risk that prices can often converge around the level set.
“The price cap presents a significant challenge for many suppliers in the retail market in what is evidently a difficult climate, with a number of providers exiting the market in recent months.
“Suppliers are already facing steeply rising costs, the vast majority of which are out of their direct control, including wholesale costs which have increased by well in excess of 30% in the last year.
“We must continue to encourage more customers to engage and benefit from the large savings that can be made by switching.”
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