Nobody likes to see their household bills going up and Allan Asher, the chief executive of Energywatch, will have been widely cheered yesterday as he railed against a lack of competition in the industry.

He has a point. It is indisputable that competition in a market of six major players is unlikely to be as fierce as it would be with 20.

It would be good, therefore, to dismantle some of the barriers that make it tough for new suppliers to enter, particularly those that are trying to develop innovative businesses in renewable energy and microgeneration.

Much greater transparency over the prices paid in the wholesale power market would also allow consumers to understand the cost pressures these companies complain about so often - usually just a few weeks before they announce record profits.

The industry regulator, Ofgem, needs to keep its eye on the ball, as a recent mis-selling scandal at npower illustrated all too well.

But while this view that UK consumers are simply being ripped off by greedy, lazy companies may be tempting, it is also highly simplistic and needs to be set in perspective.

Mr Asher's comments came on the day that oil prices soared to a record of more than $129 a barrel, while forward wholesale gas prices in the UK for next winter reached 89p a therm, up from 44p a therm last winter.

Moreover, with gas supplies from the North Sea running out fast, the UK is being forced to import increasing amounts from overseas. The figure is set to reach 75 per cent of total UK supplies by 2015, up from as little as 27 per cent last year.

Add to this the vast investments that energy companies will have to make in the coming decade in renewables, new nuclear plants and upgrades to the National Grid and the outlook for pricing in the UK is not encouraging.

While the UK's power industry is far from perfect and could benefit from reform, consumers also need to face up to a much more daunting reality - the era of cheap energy is over.

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