Gas and electric bills rising twice as fast in Britain as in Europe

Energy bills are rising more than twice as fast in the UK as in neighbouring nations, it emerged yesterday.

The figures raise fresh questions about foreign firms 'picking the pocket' of UK consumers.

Gas and electricity prices in Britain have risen by 29.7 per cent in the past year, the Organisation for Economic Cooperation and Development revealed.

This compares with the European average of 14 per cent and just 8.1 per cent in Portugal.

The OECD, made up of the world's 30 richest nations, is one of the most prestigious economic bodies in the world.

It found that Norway is the only other developed nation facing higher price rises than Britain.

Ed Mayo, chief executive officer of the new super-watchdog Consumer Focus said: 'The UK energy consumer is being clobbered faster and harder than those in Europe.

'Other countries may be doing more to keep their prices down and we should learn from them.

'The UK has a relatively free market, but the freedom to cut prices in the early years seems now to be the freedom to raise prices with impunity.

'Of course, those least able to afford it suffer most.'

Earlier this year MPs revealed the massive increases are down to European power monopolies refusing to sell our own gas back to us and effectively holding the UK to ransom.


Britain is no longer self-sufficient in gas from the North Sea and has become reliant on imports during the winter.

Foreign power firms are buying cheap British gas in the summer, storing it, then refusing to pipe it back when it is needed in the winter, effectively rationing supplies and pushing up prices.

The UK is vulnerable because it only has enough storage to supply the country with gas for 13 days, compared with 99 days in Germany and 122 in France.

Britain is also more reliant on the gas market, unlike France which obtains 37 per cent of energy from nuclear power. continues here

Millions of consumers 'ripped off by energy companies' as watchdog orders end to overcharging

Power giants are ripping off more than nine million households, according to the energy watchdog.

Some 5.9million customers with prepayment meters are being charged on average £118 a year more to stay warm than those who pay by direct debit.

But the 'big six' power companies could be raking in as much as £113million extra a month, much of it from poorer families and pensioners who are not signed up to the cheapest online deals, the National Housing Federation warned.

The scandal was uncovered by the industry regulator Ofgem yesterday, following an eight-month probe into spiralling charges imposed earlier this year.

It also found that some four million people who are not linked to the gas mains have been overcharged by £55 a year for their electricity.

Despite its findings, Ofgem failed to order an immediate halt in pre-pay meter charges, a decision-that drew condemnation from campaigners.

The regulator has given power suppliers until Christmas to make voluntary changes or face further investigation by the Competition Commission, which could take months.

British firms will have to pay 400 per cent more then French rivals for power

The National Housing Federation, which represents local housing associations, described Ofgem's response as 'deeply disappointing'.

Its chief executive David Orr complained: 'This was Ofgem's big chance to show that it was a regulator with teeth but it has fluffed it.

'Asking fat cat energy companies to do the right thing by the fuel poor is like asking Dracula to look after a blood bank.'

Tory business spokesman Alan Duncan said: 'These are completely unacceptable commercial practices which the Government should have cracked down on months ago.'

Ofgem began investigating British Gas, Eon, Npower, Scottish & Southern Energy, EDF and Scottish Power in February after all six imposed hikes of up to 25 per cent in bills.

It has cleared the firms of operating a cartel, rigging prices or imposing unjustified increases.

However, it found evidence of serious failures to offer millions of customers a fair deal.

Ofgem found the price difference between paying by PPM and direct debit has surged from around £80 to £118 since 2005. The difference between paying quarterly and by direct debit has doubled to £80.

It is also concerned that millions who choose to pay by cash or cheque on a quarterly basis are also being charged more than those on direct debit.

Its chief executive, Alistair Buchanan, said: 'Initial findings from our energy market probe give us grounds to demand that companies end practices that hinder customers, especially the vulnerable, from getting the best deal. continues here