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UK has 'some of the cheapest energy prices'

New statistics have shown that the UK has some of the cheapest energy prices in Europe.

Official figures from the Department of Energy & Climate Change (DECC) reveal Britain to have the fifth cheapest electricity market, in a study that analysed 15 major countries in Europe.

Furthermore, only Finland offers cheaper gas than the UK, despite growing concerns over increasing costs and rising profits for the Big Six energy firms, the Telegraph reports.

Finland was deemed to offer its consumers the best possible deal on gas at around 3.9p per kWh, including tax, while the UK came in at about 4.2p per kWh.

Luxembourg's prices were slightly more expensive, followed by France, Ireland, Germany, Austria and Belgium.

By comparison, of the nations looked at, Sweden's gas prices were discovered to be the most expensive at 9.9p per kWh, followed by Greece, Denmark and Portugal.

In terms of electricity, France offered the cheapest market at approximately 11p per kWh, with Greece, Finland, Luxembourg and the UK trailing behind.

Another Scandinavian country, this time Denmark, was deemed the most expensive in this regard, with a kWh costing almost 25p.

The US, however, beat all the European nations analysed in both gas and electricity, with the former priced at 2.22p per kWh and the latter 7.5p kWh.

Despite this comparison to other developed nations, the UK's energy industry has come under pressure in recent years for raising prices of gas and electricity.

Industry regulator Ofgem last month ordered an investigation into the sector to analyse how it deals with competition, after concerns were raised about how the Big Six dominate the market.

It was suggested in Ofgem's report that these firms had colluded to fix rising and falling prices, with smaller companies representing less than five per cent of the industry's share.

The investigation will take around 18 months to complete and could lead to the Big Six being broken up.

Posted by Helen Hughes