Big Six Energy Firms 'Out Of Touch' - Which?

Consumer group Which? has said the so-called Big Six energy providers are out of touch with their pricing, as the gap between the cheapest and most expensive energy tariffs continues to widen.

Between the six of them, British Gas, EDF (Paris: FR0010242511 - news) , SSE (LSE: SSE.L - news) , Npower, E.ON, and Scottish Power and provide energy to 50m homes in the UK.

Standard (Other OTC: SNDH - news) dual fuel tariffs from Big Six providers are now, on average, £329 more expensive than the cheapest dual fuel tariffs on the market, up from a gap of £182 in 2014 when the Competition and Markets Authority (CMA) began an investigation into the industry.

Energy UK, which represents the industry, disputed Which?'s findings.

Chief executive Lawrence Slade said: "Prices have not and are not rising. Energy companies are consistently bringing down their prices every day both on fixed and variable tariffs.

"People should take advantage of the fantastic deals out there. Suppliers have made it even easier for customers to switch to benefit from the best offers."

Despite the savings available, Which? said there had only been a 1.6% increase in the proportion of electricity customers and 2% increase in gas customers switching suppliers in the two-year period.

The CMA has revealed that a lack of competition in the energy market has seen customers over-paying by around £1.7bn annually.

The group said it was concerned the CMA's review would not lead to improvements for customers, and called on the watchdog to outline in its final report - due later this month - how its proposals would help.

Which? also wants a review to be held after two years to evaluate whether the market has improved.

Alex Neill, director of policy and campaigns at Which?, said: "It (Other OTC: ITGL - news) is right that the energy market has been investigated but during this time prices have continued to soar.

"If consumer trust is to be restored in this market then the CMA proposals must bring about real change in the energy market to benefit consumers who have been paying over the odds for gas and electricity."