Energy Markets need radical change

Ofcom, the body charged with overseeing the UK energy markets, is going to "radically overhaul" the UK gas and energy markets, as consumers face a huge rise in prices, in the region of 20%.

The rise in energy prices is a major contributor to high inflation rates in the UK and heaps more misery on the UK consumer, a more or less captured market from the energy suppliers point of view.

The Government, through the Bank of England, have a responsibility to drive the inflation rate down to a stated target figure of 2%, less than half of current levels and this initiative will help but not in the short term.

Energy companies say they are just following and passing on prices they are receiving in international markets but in the last few years the upward prices are passed on immediately and when the markets ease, energy prices stay higher for longer and the price margin, usually higher, is never in the consumer's favour.

This is the same in the fuel markets. When the oil price goes through the roof and then falls significantly, the pump prices always stay higher for longer.

Why is that we wonder?

There are futures markets but no one seems to use these anymore to keep prices down when prices are advantageous, or do they? and pocket the difference.

Either way the UK consumer is not shown a great deal of respect by companies that may believe consumers are desenitised to price rises and can get away with murder, responsible only to their share holders, though maybe it isn't just the Bankers that need their bonus arrangements looked at