Energy customers 'paying more than they need to'

An investigation into the energy industry by the competition and markets authority says the big six energy companies have been overcharging customers, by more than a billion pounds a year, because competition in the industry is not working as well as it should.

The report says reforms allowing customers to shop around for suppliers haven't worked as well as they should have.

Roger Witcomb, chairman of the Competition and Markets Authority, says people are "paying more than they need to". He claimed "the deals are out there" but customers "are not going forward and looking for them."

A two pronged attack would protect customers from overpaying, he said. Firstly, making the market work better would prevent companies from overcharging as "consumers would just go away."

Secondly, a transitional price cap would protect those who are disengaged and those who are disadvantaged.