A planned investigation into gas and electricity probe could bolster the finances of elderly people.
Consumer Focus has announced support for an Early Day Motion introduced to parliament today by John Grogan MP.
The document calls for a Competition Commission review to be launched into how market prices influence consumer gas and electricity bills.
Energy suppliers buy their fuel on the wholesale markets and then sell it on to domestic customers.
Consumer Focus figures show that gas prices for customers rose by 51 per cent during 2008 and have fallen by six per cent so far this year, while electricity costs rose by 28 per cent and dropped by eight per cent.
Earlier in the year, the organisation released data showing that suppliers would need to impose price cuts of at least 7.4 per cent for gas and 3.1 per cent for electricity if their consumer prices were to reflect market trends.
The Competition Commission could recommend measures resulting in a reduction in prices, benefitting pensioners who spend a large proportion of their incomes on fuel.
However, a more immediate way to supplement finances can be achieved by home owning pensioners via equity release plans.
Robert Hammond, energy expert for Consumer Focus, said: "A truly competitive market would ensure that when energy companies pay less to supply energy, customers pay less to receive it.
"Yet none of the big six energy companies are breaking ranks and passing on lower wholesale costs to their mainstream customers."
Posted by Richard Planner
