Energy firms want competition probe

23/09/11

By Stephanie Gonzalez

Householders hit by soaring fuel bills could be in line for more positive news after three of the country's biggest suppliers called for a competition inquiry in a bid to restore consumer trust in the industry.

E.ON, npower and EDF are said to be so concerned about the low levels of trust in the industry that they want a formal investigation by the Competition Commission to reassure customers about their pricing.

The move is a major U-turn by the companies, which had previously been opposed to any inquiry, and comes in the wake of stinging criticism over recent bill increases.

Energy secretary Chris Huhne accused the industry of predatory pricing following the huge hike in gas and electricity prices this autumn which have left consumers feeling the pinch.

EDF, which is owned by a French company, was the first to break ranks when it called for a referral earlier this month.

Npower, owned by German group RWE, reportedly feels that a formal inquiry is the only way to get clarity, with chief executive Volker Beckers saying: "We've got nothing to hide" so "let's get on with it".