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Power firms including British Gas are facing more government pressure to pass on price cuts to households as wholesale energy prices tumble.
This week it announced plans to cap the fees charged by pension funds and to replace Ofgem with a tough regulator that would force firms to pass on price cuts in the wholesale energy market.
It launched an investigation into whether petrol companies were too slow to pass on price cuts and found that this was not the case.
Labour welcomed plans to make tariffs simpler, but said the government also needed to reform the energy market and create a new watchdog to force companies to pass on price cuts.
Fed officials are hoping that companies absorb the cost of higher wages by letting their profit margins decline, not by passing on price hikes to customers.
"We believe Wal-Mart will effectively use its private-label merchandise to fill any value gaps left by vendors who decide to pass on price increases," one analyst, Shari Schwartzman Eberts of J. P. Morgan Securities, wrote in a note to investors last month.
A wobbly economy makes it hard to pass on rising feed prices to customers.
Indian exporters have been moaning about the damage to their competitiveness.Price competition from imports and the government's refusal to pass on rising oil prices in full have helped to keep inflation in check.
Only New York, he said, allows a utility to pass on price increases to consumers immediately.
One source said that Morrisons had no choice but to pass on price rises from Unilever to shoppers.
Firms can simply pass on price increases to their customers, but voters are unlikely to appreciate unpredictably gyrating bills.That nice Mr PutinOther worries are political.
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