With trust in the energy industry collapsing, confusing adverts from energy companies and consumers still reeling from the recent spate of inflation busting price rises, Which? calls for radical new measures to increase competition in the broken energy market.

A new Which? report, The Imbalance of Power, today lays bare the full extent to which the retail energy market is failing consumers. Which? argues that the Government's proposals for reform are doomed to fail unless they are beefed up with radical new measures to increase competition in ways that can keep rising energy prices in check.

The report comes as we reveal a shocking 19 point increase in public distrust in energy companies over the last six months. More than half (54%) of the public now say they don’t trust energy companies, with only car salesmen distrusted more.

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New Which? analysis has also found that suppliers aren’t playing fair when they announce and advertise energy prices. Which? found energy companies bamboozling customers with tempting price offers in adverts that could actually leave some households worse off. And the reality of recent average price rises in the headlines in fact varies widely depending on where you live and how much energy you use. For example, some SSE customers in the North East are facing a hike of as much as 17.15% for electricity.

Rising energy prices are one of consumers’ top financial concerns yet some 75 per cent of customers remain stuck on the most expensive tariffs.

Which? argues that the Government's commitment to force energy companies to move people onto their lowest energy tariff will not be enough to guarantee a fair price for consumers because of the complexity and lack of competitive pressure in the market.

Which? executive director, Richard Lloyd, said: "There has been a collapse in trust in energy companies in the last six months. After the recent round of inflation busting price hikes and announcements about the cost to consumers of investment in the energy system, it's no wonder people are left questioning whether the price they are paying is a fair one.

"The Government’s energy tariff reforms are doomed to fail without more radical action to increase competition. Only with tougher action to tackle this broken market will consumers be confident they’re paying a fair price."

(CD/GK)