Regulator recruits consumer panel

Ofgem is investigating the domestic gas and electricity market

Energy regulator Ofgem is recruiting a panel of consumers for their views and feedback as domestic electricity and gas bills look set to rise again.

The group of household energy consumers will be regularly refreshed and will start giving their views by 1 October.

They are expected to be consulted on bills and environmental issues.

The plan was announced in the same week that British Gas owner Centrica signalled that gas prices for customers could increase again in 2008.

"Tapping into developing consumer attitudes to energy is a key concern for Ofgem, especially as we move into an era of rising energy costs and climate change priorities," said Ofgem chief executive Alistair Buchanan.

Key changes

Ofgem said it wanted to "sharpen its focus" on consumer concerns.

The new panel will convene in the same month that the National Consumer Council replaces Energywatch as the sector's consumer watchdog.

Consumers might also have more idea of potential increases in their utility bills later in the year, after Centrica warned of the increasing wholesale costs for UK gas suppliers.

Price comparison website Uswitch.com is predicting that if households are "lucky" they will see a 10%, or £105, price rise in gas bills by late summer with a further 15%, or £173, hike in January 2009.

Ofgem has been conducting a detailed investigation into the electricity and gas markets for households and small businesses since February. The move was prompted by criticism of rising fuel bills.

'Good idea'

"The idea of a consumer panel to feed into Ofgem is a great idea - as long as Ofgem really listens to and acts on consumers' worries and needs," said Gordon Lishman, director general of Age Concern.

Warm words won't heat the homes of the poorest customers affected by rocketing energy prices Gordon Lishman, Age Concern

"Warm words won't heat the homes of the poorest customers affected by rocketing energy prices. Predictions of energy bills soaring by a further 25% this year will be causing considerable concern for many pensioners."

He estimated that this would push 500,000 older households into fuel poverty by the end of the year.

"We need real action from the government and energy industry to prevent the fuel poverty crisis escalating," he said.