![Which? says significant reforms are needed to restore confidence in the gas and electricity sector.](https://webarchive.library.unt.edu/web/20141022205040im_/http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2014/10/16/1413470023423/c60cbc40-8fc0-42b7-9f5d-b5a0f3dcd546-460x276.jpeg)
Consumers are paying an average of £410 more a year for energy compared with a decade ago, despite using significantly less, according to a watchdog.
Which? said its analysis of Office for National Statistics figures had found annual spending on energy had rocketed by 52% above inflation from £790 in 2003-04, a figure it adjusted for 2012 prices, to £1,200 two years ago. Domestic energy consumption data from the Department of Energy and Climate Change showed a drop of 17% over the same time frame.
The extra £410 a year households were spending on energy was nearly double the increase of £210 a year in housing costs of rent or mortgage payments and maintenance over the same period.
The price of gas and electricity had outstripped inflation since 2003-04, with an average increase of 137% compared with 27%. Over the same period, water supply costs had gone up by 67% and food by 43%. Almost three-quarters of people (72%) were worried about energy prices, according to surveys by the consumer group.
Which? said such a “massive” rise in energy bills over the past 10 years showed significant reforms were needed to restore confidence in the sector and guarantee fair prices. It had previously called on the Competition and Markets Authority to investigate the best way for the regulator to establish a “price to beat”, so consumers could trust the price they paid was fair, and for suppliers to use pricing similar to petrol pump displays to allow consumers to easily compare tariffs.
The executive director of Which?, Richard Lloyd, said: “At a time when rising energy prices are consumers’ number one concern, it is shocking that people are paying more despite using less. That’s why it is all the more urgent that regulators and government act to give consumers confidence that the price we are paying for our energy is fair. Major reforms are needed now to restore trust in the industry and to guarantee fairer energy prices for consumers.”
The shadow energy secretary, Caroline Flint, said: “Under David Cameron’s government, Britain is facing an energy bill crisis, with millions of people struggling to heat their homes. Labour has already set out radical plans to freeze energy prices until 2017, saving the average household 120, and fix the energy market for the future, with a tough new regulator to curb rip-off bills.
“But one of the main reasons our energy bills are so high is that our homes are some of the least energy-efficient in Europe -– leaking heat from their roofs, walls and windows. That’s why Labour has set out plans to freeze energy bills, reform the energy market and upgrade at least five million homes over 10 years. Our plans will mean cheaper bills and warmer homes for millions.”