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Watchdog: UK Energy Bills 'Catastrophic'

British consumers are "getting it in the neck" from gas and electricity firms because of a lack of effective competition, a watchdog has told a powerful committee of MPs.

Energywatch chief executive Allan Asher told a regulatory reform hearing that energy is under the control of a "powerful oligopoly" where firms "do not feel the need to innovate or compete".
Since the start of 2004 average energy bills in British households have climbed from £580 to more than £1000, a rise of almost 81%.
The price comparison service uSwitch has warned that if wholesale energy prices keep rising consumers could be paying more than £1300 by the start of 2009.
Last week British Gas, owned by Centrica, warned that prices would go up again, blaming the cost of gas on the wholesale market.
Energywatch, which is due to be abolished in September, has warned the government that there were "too many no-go areas" when it came to information disclosure, and that exposure to the European energy markets punished consumers.
Mr Asher said: "Higher energy prices will be catastrophic for the 4.5million fuel poor and those households on the brink of fuel poverty."

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