Data from the consumer watchdog’s Fair Energy Prices campaign shows yearly spend on energy rose by 52 per cent, over and above inflation, from £790 in 2003/04 to £1,200 in 2012. This is despite the energy use by consumers falling by 17 per cent over the same period.
The price of gas and electricity has increased by an average of 137 per cent since 2003/04 outstripping inflation which rose by 27 per cent. Over the same period, water costs rose by 62 per cent and food by 42 per cent, the report added.
As part of the campaign, Which? is calling for reforms to restore confidence in the energy industry and guarantee fair prices.
It wants the Competition and Markets Authority (CMA) to investigate the best way for the regulator to establish a ‘price to beat’ so that consumers can trust that the price they pay is fair. It is also calling for energy suppliers to use simple and directly comparable pricing, similar to petrol pump displays, so that consumers can compare prices more easily and make the best choice if they switch.
“At a time when rising energy prices are consumers’ number one concern, it is shocking that people are paying more despite using less. That’s why it is all the more urgent that regulators and government act to give consumers confidence that the price we are paying for our energy is fair,” said Which? executive director, Richard Lloyd.
Lloyd added: “Major reforms are needed now to restore trust in the industry and to guarantee fairer energy prices for consumers.”