Ofgem is making progress in saving customers more than half a billion pounds.

Ofgem’s energy market probe has made developments in saving customers more than £500 million in unfair pricing on their energy bills, but has stated it will go to the Competition Commission if sufficient progress is not made following its proposed consultation in January 2009.

The organisation’s investigation into the sector included looking at the relationship between retail and wholesale energy prices, and the experience of companies trying to enter the market.

So far, more than £300m has been saved for customers – including pre-payment meter users – and a further £200m in price reductions should reach around four million households in the coming months.

Ofgem will hold a consultation in January and, if progress is not made quickly enough by the six major energy companies, will consider taking further actions to defend customers. Alistair Buchanan, Ofgem Chief Executive, said: “We’ve seen encouraging signs since the end of our initial investigation but we demand more and quicker action for those customers currently losing out.

“And we are about to consult on new rules to end unfair pricing in the future. If we are not satisfied with the suppliers’ responses, we can, should we choose, go to the Competition Commission.”

Along with the January consultation, Ofgem will tighten rules on marketing and sales activities, and look at ways to help small businesses enter the market.

To read the report in full, visit Ofgem’s website: www.ofgem.gov.uk ^[1]