Ofgem has warned of the “inevitability of rising energy prices” and said the market “looks like it may well get tighter” as it urged suppliers to work to win back consumer trust.
The regulator’s chief executive Andrew Wright said “rising pressure” on wholesale markets meant it was “more important than ever that consumers feel that they can trust the market”.
He called on suppliers to use Ofgem’s reforms for a “simpler, clearer and fairer market” as a “golden opportunity to win back customer trust”.
He said: “Consumers are frustrated and angry that the latest round of price rises have happened at a time when incomes are already being squeezed.
“Confidence in the market is very low and suppliers must use reforms to reach out to consumers and restore trust.
“Our reforms are the best chance for consumers to see immediate benefits through simpler tariffs, clearer information and much more consumer protection. The reforms give consumers the choice they value and the simplicity they need.”
Meanwhile Ed Miliband has launched an attack on Britain’s “Wonga economy”, saying the rise of payday lenders symbolised the squeeze on living standards facing millions of ordinary families.
The Labour leader accused the firms of preying on the vulnerable, creating a “quiet crisis” for thousands of households left with debts they were unable to pay off.
His intervention came as representatives of the three of the biggest payday lenders – including Wonga – were facing a grilling by MPs on the Commons business, innovation and skills committee.
In a speech delivered at Battersea Power Station, Mr Miliband took issue with claims by the boss of Wonga that he was speaking for a “silent majority” who were happy with the service they were offered.
He said the reality for many was “bullying, harassment and threats” from lenders after they racked up huge interest charges they could not afford to pay back.
Mr Miliband stepped up his attack on David Cameron over living standards, and what he said was the coalition’s failure to curb soaring energy bills.
He challenged Tory and Liberal Democrat MPs to back Labour’s plans for a temporary freeze on electricity and gas charges in a Commons vote later today.
Wonga rejected Mr Miliband’s accusations about the firm and offered to meet the Labour leader to discuss the issues.