Without a maths degree, it is very difficult for consumers to determine which company is best for them

Edward Leigh MP, chairman

Millions of people could be paying less for their electricity bills, if the regulator made it easier for them to switch, says a new report.

The report by the House of Commons' public accounts committee (PAC) will make stark reading for Ofgem, which has proposed lifting price controls on electricity companies from April.

By June 2000, about 19 million customers had not switched suppliers, even though, together, they could save up to �670m - about 13% of an average yearly bill.

The report concludes that the majority of consumers have gained little from competition, and says that Ofgem has failed to curb high-pressure selling techniques - and not made it easy for people to switch.

Stinging rebuke

MPs now want Ofgem to demonstrate that the market is working effectively to protect customers, before it removes price caps.

Electricity companies currently have their prices capped by Ofgem, but it is proposing to lift these in April - and the consultation ends on Friday.

Did you know?

Switching energy suppliers saves UK households on average �100 (Consumers' Association) There are more than 20 energy suppliers Installing cavity wall insulation saves an average home �150 a year Low energy light bulbs cost about �2, but will save �10 a year Paying by direct debit can save up to 10%

MPs believe that while "the majority have gained little from competition", price caps have been beneficial to all consumers.

While 6 million customers had switched supplier by June 2000, and saved �140m a year, companies have incurred costs of �120m a year under competition.

As a consequence, while some customers will have benefited, others will be worse off overall, says the report.

Ofgem's response

In a statement issued after the publication of the report, Ofgem said that 9 million customers had now switched, 3 million more than at the time of the PAC enquiry.

Ofgem said that these customers had made savings totally �210m a year.

Useful contacts

Energywatch: 0845 601 3131 (electricity complaints) Energy Saving Trust: 0845 727 7200

But it admitted that the process of switching needed reviewing.

MPs are concerned that Ofgem is not doing enough to make it easier for people to switch.

Edward Leigh MP, PAC chairman, said: "Without a maths degree, it is very difficult for consumer to determine which company is best for them.

"Ofgem must urgently find a way for people to be provided with clear information to use as a basis for making decisions.

"Without this, domestic electricity competition can never fully succeed."

The report estimated that if the remaining 19 million customers (up to June 2000) switched suppliers they could save up to �670m or 13% of their annual bills.

Since December 2001, however, responsibility for providing comparative data to domestic electricity consumers has been passed to Energywatch, a consumer watchdog.

The information is available on its website.

De-regulation losers

MPs are also angry that there are still more than 55 complaints a week about high pressure or misleading selling techniques.

The majority have gained little from competition

PAC report

And MPs have criticised Ofgem for not doing enough to help low-income groups.

The report calls on the regulator to promote alternatives to prepayment meters, and encourage greater competition and reduced prices in the low-income market.

"Many use prepayment meters, for which few companies offer competitive tariffs", it concludes.

"As a result, tariffs for those on low incomes are commonly higher than for customers using other payment methods."

The report also says that Ofgem has not done enough to find a practical solution to "debt blocking".

According to Energywatch, people with as little as �5 outstanding debt are prevented from transferring to a new supplier.

Price controls

The Consumers' Association supported the report's conclusions, and is against price controls being lifted.

Adam Scorer, energy spokesman, told BBC News Online: "We think it would be premature to lift remaining price controls.

"Prices have come down since deregulation, but for those people on prepayment, competition has brought relatively few benefits."

"There is no reason to think that competition will step in and ensure that vulnerable consumers benefit. They must not be lifted."