Price hikes must spark real action

IT appears the only way is up when it comes to gas and electricity prices in this country.

Airtricity’s hike will come as another body blow to hundreds of thousands of families, especially those who are already struggling to pay their bills.

It claims it has no option as it is reacting to factors beyond its control.

That may be, yet when there is a reduction in the price of gas and oil on wholesale markets this is seldom passed on to the consumers.

Indeed in recent years when the price of crude oil more than halved there was only a very slight drop in the price paid on the forecourts.

Deregulating the market was supposed to lead to competition which in turn would keep prices low but that has not been the case.

All it has done is turn a monopoly situation into what is now a glorified cartel where companies just follow the example of their supposed competitors when they raise prices.

On top of the latest price hikes there are now fears the Government is planning a carbon tax which will hit the elderly and struggling families hardest.

What is needed is a powerful competition watchdog which will only sanction price hikes which can be justified to replace the current system where it appears the suppliers can up their charges whenever they like.