Gas switch 'could save customers £100'

New statistics from Ofgem show that some energy companies are charging customers up to 100 more than the cheapest companies on their tariffs.

Ofgem said that energy firms have boosted margins by 30 in the past three months as wholesale costs continue to fall.

Andrew Wright, senior partner for markets, said: "We are seeing a lot of activity in the market, with over five million people having switched in 2009, and now a 100 gap has emerged between the best and worst deals."

Ofgem said many consumers would be able to reduce their bills significantly by switching to another supplier. It said the 100-a-year saving was on standard tariffs, but other types of deals could mean a potentially larger amount.

The watchdog is trying to increase the competitive pressure on energy suppliers and has published a list of proposals to help increase liquidity in the wholesale markets.

It believes there is a "lack of transparency" for supply firms when looking at future energy costs, making it difficult for existing businesses or potential entrants into the sector to make investment decisions.

British Gas recently announced a seven per cent reduction in its tariffs.