Energy bills could have been cut further and sooner, according to new research.

A report by Which? revealed the failure of retail prices to align with wholesale costs has cost consumers £2.9bn over the last year, an equivalent of £145 per household on standard energy tariffs.

The recent cuts in Big Six standard gas tariffs of up to 5.1% should have been greater, in the region of 8.8% to 10.3%, if they were to align with wholesale energy costs.

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Which? executive director, Richard Lloyd said: "Our analysis places a massive question mark over how suppliers have been setting prices over the last two years. They now need to explain to their customers why bills don't fall further in response to dropping wholesale prices. Energy bills are consistently the top consumer concern so it’s about time people got a fair deal.

"While the competition inquiry should establish beyond doubt whether the price people are paying today is right, consumers will now look to politicians of every party to set out how they'll deliver fair and affordable energy prices in the future."

(CD)