Ofgem demands clarity from energy suppliers

Ofgem said in a statement that it wants clarity on behalf of consumers that the market is transparent and is working as effectively as possible.

The UK energy regulator says it will review the retail energy market to decide if further changes are needed to ensure the market works in the interests of consumers and to increase transparency in the energy market.

As part of this review it will investigate the retail accounts, recently received by Ofgem under new licence requirements.

Ofgem’s chief executive, Alistair Buchanan, said: ‘With Britain facing an investment bill of £200bn over the next 10 years, consumers have the right to expect that the energy retail market is providing them with value for money.

‘Our analysis published today shows an increase in company margins from £65 to £90 at a time of rising energy prices, which causes Ofgem to rightly ask if companies are playing it straight with consumers.

‘The energy retail market can only be fully effective if consumers have confidence that the market is transparent and easy to take part in. So we will go beyond our usual quarterly reports on prices and do a comprehensive review of the retail market and our recent reforms from the consumers’ perspective. We will also carry out a detailed investigation of the newly available retail accounts and the facts behind these numbers.’