Four of the six major energy suppliers have announced average price rises of more than 8 per cent, whilst Co-operative Energy has announced winter price rises of an average of 4.5 per cent.
Adam Scorer, director of policy at Consumer Futures, said the latest price hike from one of the big six suppliers “comes as no surprise”, adding that “two reviews of the market place are urgently required”.
He said that a competition review is needed to look at the structure of the energy market, while a “value for money review” is needed to “ascertain the costs and benefits of government policy”.
Richard Lloyd, executive director at Which?, said “the prime minister is right to carry out a review of competition in the energy market” and that “government must make sure its own policies are not adding unnecessary costs to consumers’ bills”.
He added “everything possible must be done to ensure competition is working and prices are kept in check”, but warned that the energy review “won’t help cash strapped consumers who are struggling this winter”.
Ann Robinson, director of consumer policy at Uswitch.com, said: “Unfortunately, the floodgates have opened and it looks like consumers are going to be buffeted by suppliers in very quick succession.”
She added that energy bills of £1,500 a year will be “the tipping point where many will have no choice but to go without heating”.