Energy suppliers face pricing review

26.11.2010

Ofgem is to investigate recent domestic energy price rises. The watchdog said that the net profit margin of £65 per typical customer in September has risen 38% to £90.

These claims come after price rises were announced by three of the "big six" suppliers in recent weeks. Ofgem’s review will see whether more action is needed to protect consumers.

The review will be finished in March 2011. An investigation in October 2008 found no evidence of anti-competitive behaviour in the sector.

Energy UK, which represents the major energy suppliers, said it had "nothing to hide".

"The energy retail market can only be fully effective if consumers have confidence that the market is transparent and easy to take part in," said Ofgem chief executive Alistair Buchanan.

"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.

"Greater transparency in the market is good for consumers, investors and for the energy industry as a whole."

For the full BBC report, click here.