Big Six now have to reveal wholesale prices

26 February 2014

Energy. Lots of it. Expensive. The Big Six energy suppliers have been hounded for a while and they've reacted badly so far, threatening Britain with a blackout. Now, they're going to be extra annoyed as they are going to have to disclose long-term power prices, twice daily, from next month, thanks to new rules from Ofgem.

If they don't comply, they'll be penalised.

"Almost two million customers are with independent suppliers and we expect these reforms to help these suppliers and any new entrants to grow," Andrew Wright, Ofgem's chief executive, said in a statement.

Energy minister, Ed Davey said British Gas might have to be broken up to put an end to excessive profit margins and Ofgem, the Office for Fair Trading and the Competition and Markets Authority have all been investigating the competition in Britain's energy retail market.

"Ofgem continues to think there is an issue around liquidity and transparency in the wholesale energy market," said Peter Atherton, utilities analyst at Liberum Capital. "But whether (these rules) solve any of the problems is questionable."

It's a messy situation and it doesn't look like anyone's going to be getting cheaper bills any time soon.

TOPICS:   Utilities

1 comment

  • moi
    Well, considering that they 'buy' their wholesale electricity and gas from their own companies, this isn't really going to achieve an awful lot. Theyll just put the wholesale cost up, and lower the retail price, that way they can say that their retail companies make absolutely no money in the UK. Maybe a small step in the right direction, but it still falls way to short from achieving anything constructive. Back to the drawing board Mr Davey...

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