EU consumer chief slams energy, banking sectors

The European Union's consumer chief will investigate the bloc's retail electricity sector this year after an EU-wide report on Monday said some energy, banking and transport companies may be ripping off customers.

"I have decided to make the electricity retail market the target sector for investigation in 2009," European Consumer Commissioner Meglena Kuneva said.

A spokeswoman for Kuneva said an "in-depth market analysis" would be carried out with EU Energy Commissioner Andris Piebalgs over the next 12 months to determine whether to ask national authorities to act next year against offending companies.

Last year's report, known as the Consumer Market Scoreboard, had also found fault with the 27-country EU's retail banking sector, notably fees for the management of accounts.

Kuneva is expected to publish the results of her follow-up investigation into that industry before the summer, her spokeswoman said.

Monday's report said:

– Fewer than two-thirds of consumers are satisfied with their energy supplier

– About 60 percent of consumers reported price increases from their energy supplier, while only 3-4 percent saw decreases

– Energy was the sector in which consumers were least likely to switch supplier, with 7 percent doing so for gas and 8 percent for electricity

– Bank fees and interest rates are highly differentiated within the EU

– Fewer than half of consumers using urban transport, such as buses, trams and trains, said they were satisfied, with one out of four experiencing problems and making a complaint.

"I am very concerned that three services that play such a central part in people's lives are scoring so badly with EU consumers," Kuneva said.