Great Britain. Parliament. House of Commons. Committee of Public Accounts
Published: 2008
Total Pages: 44
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This is the 52nd report from the Committee of Public Accounts (HC 571, session 2007-08, ISBN 9780215524928), and it follows an NAO report (HC 342, session 2007-08, ISBN 9780102953114). It looks at protection of consumers through removal of price controls by regulators, examines the benefits of this decision to different groups of consumers and the challenges of regulating these markets. The regulators Ofcom, Ofgem and Postcomm have statutory objectives requiring them to protect consumers through the introduction of competition, where appropriate. Between 2002 and 2006, each removed retail price controls from the following: fixed line telephone provision; gas and electricity supply; special delivery postal services for business account users. Once price controls are removed, regulators rely on consumers to switch suppliers, so in theory rewarding companies who offer good service and competitive prices. For this to work, consumers need good information about the different suppliers, must be able to switch supplier easily, have confidence in the market to believe changing supplier will make a difference and, when necessary, obtain redress if the company behaves anti-competitively. Regulators need to ensure the competition is working effectively and that there is protection for vulnerable consumers, especially at a time of large increases in energy prices and telecoms prices above those of most countries.