COMPETITION COMMISSION AND ENERGY PRICES

That this House expresses deep concern at escalating gas and electricity prices; fully expects the price rises announced by British Gas, Npower, EDF Energy and Scottish Power to be followed by their competitors; is particularly anxious about the impact these rises will have on vulnerable consumers, public services and the competitiveness of British businesses; notes that the number of large scale, licensed energy suppliers serving domestic and small business customers in the Great Britain energy market has reduced from more than 20 following liberalisation to just six today; is further concerned that the high degree of vertical integration of generation, supply and network activities of the six major companies acts as a barrier to new entrants into the Great Britain energy market, thereby reducing effective competition; understands that the Enterprise Act 2002 provides that `where a feature or combination of features of a market in the UK for goods or services [which] is, or appears to be, significantly harming the interests of consumers' a market investigation reference to the Competition Commission can be made; regrets the fact that the regulator Ofgem has failed to make such a reference; and calls on the Secretary of State for Business, Enterprise and Regulatory Reform to instruct the Competition Commission to conduct a full market investigation and where necessary take action to increase competition.