Npower backs inquiry
Worcester-headquartered energy company Npower has now changed its mind and will back an inquiry into pricing, according to reports.
Npower has become the third of the 'big six' energy suppliers to back an inquiry having previously opposed a Competition Commission investigation, the Financial Times reports.
The company, which is part of the German RWE group, now believes an inquiry would restore consumer confidence in the wake of energy secretary Chris Huhne's comments at the Liberal Democrats conference.
Volker Beckers, chief executive of RWE npower, said that if an inquiry creates clarity "let's get on with it … we have nothing to hide".
Speaking at the conference, Huhne said: "With Ofgem we are cracking down on any bad practice that could smack of being anti-competitive.
"It's not fair that big energy companies can push their prices up for the vast majority of their consumers – who do not switch – while introducing cut-throat offers for new customers that stop small firms entering the market.
"That looks to me like predatory pricing. It must and will stop."
Responding to Huhne's comments, Beckers said the British energy market must offer "a firm base from where long term investment decisions of more than £200bn can be made", warning instead it has become "a political football".
"It is easy to deflect attention away from the legislative impact on consumer bills by pointing the finger at the profits of energy companies," said Beckers.
"The profit margins made by energy companies are not unreasonable – the recently leaked analysis from the Prime Minister's office clearly shows that our profits are around half that expected from non-energy FTSE100 companies.
"Over the last three years, RWE has invested over £3 into the UK for every £1 RWE Npower has received in profit.
"The competitiveness of this industry has been investigated many times before and each time we are told that the UK has one of the most competitive energy markets in the world.
"What we need now is clarity; clarity that allows us all to move on and deliver a low carbon, affordable energy future for the UK."
