Consumers could miss out on £1.9bn 'without energy reforms'

Unless the energy market is reformed, consumers could lose out on up to £1.9 billion by 2020, a study has found.

Tougher regulation of the sector is necessary in order for Ofgem to boost competition and guarantee that pricing is fair for customers, according to the think tank IPRR.

It believes that the big six energy companies are overcharging their customers.

"We are calling on the big six and Ofgem to demonstrate whether efficiency savings are being achieved in the energy market and whether consumers are benefiting from lower bills as a result," IPPR associate director Will Straw noted.

Mr Straw added that more competition among energy firms is needed in order for households to pick up fairer prices for their bills.

Families in rural areas will especially be looking for cheaper deals, as statistics from Money Mail have found that higher energy bills and fuel costs are two of the main reasons for a rise in the cost of living.