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22/02/2008
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses.
Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms.
The regulator has no strong evidence of failure in the gas and electricity market. But it said recent events had damaged public confidence.
Ofgem Chief Executive Alistair Buchanan said: "The decision to conduct the probe is in response to public concern about whether the market is working effectively. We are concerned about the increased volatility of wholesale prices and we want to investigate how European and other global energy market developments are affecting energy bills in Britain.
"We, of course, keep the market under constant surveillance but to date we have seen no clear evidence that the market is failing.
"Nevertheless, recent events in the market have increased public concern and have damaged customers' confidence that competition is working well and giving them a good deal. Customer confidence is vital for a well-functioning market.
So we shall replace our magnifying glass with a microscope and take a more detailed look at the retail market and the influence of global wholesale market developments," he said.
Its investigation will include the relationship between retail and wholesale energy prices. UK gas and electricity firms have blamed their recent price hikes on soaring wholesale costs.
The inquiry will be carried out under Ofgem's Enterprise Act powers, with its initial findings due to be published before the end of September.
Ofgem's inquiry comes as British Gas announced a 500 percent increase in annual profits for its residential arm.
The Centrica-owned supplier revealed that underlying operating profits last year leapt to £571 million from £95 million in 2006, contributing to a 40% surge in group-wide profits.
(CD)
Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms.
The regulator has no strong evidence of failure in the gas and electricity market. But it said recent events had damaged public confidence.
Ofgem Chief Executive Alistair Buchanan said: "The decision to conduct the probe is in response to public concern about whether the market is working effectively. We are concerned about the increased volatility of wholesale prices and we want to investigate how European and other global energy market developments are affecting energy bills in Britain.
"We, of course, keep the market under constant surveillance but to date we have seen no clear evidence that the market is failing.
"Nevertheless, recent events in the market have increased public concern and have damaged customers' confidence that competition is working well and giving them a good deal. Customer confidence is vital for a well-functioning market.
So we shall replace our magnifying glass with a microscope and take a more detailed look at the retail market and the influence of global wholesale market developments," he said.
Its investigation will include the relationship between retail and wholesale energy prices. UK gas and electricity firms have blamed their recent price hikes on soaring wholesale costs.
The inquiry will be carried out under Ofgem's Enterprise Act powers, with its initial findings due to be published before the end of September.
Ofgem's inquiry comes as British Gas announced a 500 percent increase in annual profits for its residential arm.
The Centrica-owned supplier revealed that underlying operating profits last year leapt to £571 million from £95 million in 2006, contributing to a 40% surge in group-wide profits.
(CD)
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Energy regulator Ofgem has launched Energy Best Deal, a campaign to empower low income customers with the information to help them make the most of the energy market. The campaign has been devised by Ofgem and Citizens Advice and has been funded by the Department for Energy and Climate Change (DECC).
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Ofgem Puts Industry On Notice To Make Markets Work Better For All
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Ofgem Puts Industry On Notice To Make Markets Work Better For All
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Ofgem To Fine SSE £10.5m
Ofgem has announced it will fine energy company SSE as much as £10.5m for misselling. The energy watchdog said it would fine SSE for "numerous breaches of its obligations relating to telephone, in-store and doorstep sales activities".
Ofgem To Fine SSE £10.5m
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09 March 2012
EDF Energy Offers £4.4m Package Following Ofgem Investigation
EDF energy has offered to pay a £4.5 million package to vulnerable consumers after an Ofgem investigation found that the energy firm had breached its marketing licence conditions. The size of the payment reflects the constructive and cooperative dialogue with Ofgem that EDF Energy maintained throughout the investigation.
EDF Energy Offers £4.4m Package Following Ofgem Investigation
EDF energy has offered to pay a £4.5 million package to vulnerable consumers after an Ofgem investigation found that the energy firm had breached its marketing licence conditions. The size of the payment reflects the constructive and cooperative dialogue with Ofgem that EDF Energy maintained throughout the investigation.
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Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
