Government funded energywatch today issued a statement on energy price speculation.

Allan Asher, the Chief Executive of energywatch said in a statement, “Scottish and Southern Energy’s customers have benefited from comparatively low prices for some time. That the company is to increase its tariffs is as inevitable as it is lamentable.”

He continued saying, “Major problems with electricity generation and upstream gas supply mean the UK energy market is anything but competitive. energywatch wants a full Competition Commission Inquiry, as there has been in Europe, to fix the problems of the UK energy market.

“Until the problems are fixed consumers are going to remain the victims of this market failure.”

The statement comes on a day which saw Scottish and Southern Energy announce that its energy prices would probably increase. Although not until 2007.