Threat of legal action against energy companies

Commenting on reports that Ed Miliband, the Energy Secretary, has said that the Government would be prepared to legislate if energy companies do not come up with a fairer pricing structure, Tim Wolfenden, energy expert at uSwitch.com, says: "Today's warning serves two purposes. It makes the Government look as though it is actually doing something about household energy prices, which are becoming a bone of consumer contention. But it will also act as a stick to prod suppliers along the route of fairer pricing, as outlined in Ofgem's recent review.

"This warning is simply letting the companies know that they need to act quickly if they still want to be able to operate within a self regulatory environment, otherwise regulation could be imposed. The Government has given this warning shot, knowing that Ofgem has already outlined the changes that need to be made. Whether the Government genuinely has the appetite to wade in if suppliers are seen to be dragging their feet remains to be seen."