Ofgem study clears 'big six' energy firms of price fixing

Britain's big six energy suppliers have been cleared of allegations that they are operating a cartel.

A seven-month inquiry into the companies - British Gas, Eon, npower, EdF, Scottish Power and Scottish & Southern Energy - found "no evidence" they were colluding to rip off consumers.

Watchdog Ofgem launched its investigation after all the companies raised their prices within a few weeks of each other. It trawled through internal emails and minutes of meetings for signs that the companies were talking to each other about price setting but says it was unable to find any.

However, Ofgem did find that the worst-off four million consumers are missing out on the benefits of energy competition. It has ordered a clampdown on high price differences between customers on pre-payment meters and those paying by direct debit.

Ofgem chief executive Alistair Buchanan said: "Initial findings give us grounds to demand that companies end practices that hinder customers from getting the best deal. But we have found no evidence of a cartel."