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Energy firms under cosh

ED Miliband, Energy and Climate Change Secretary, has urged Britain’s largest energy companies to cut prices after Ofgem said they weren’t passing on reduced wholesale costs.

So far British Gas is the only big six energy supplier to cut its household energy prices this year.
Miliband said: “British Gas’s recent cut was a welcome first move, but we need to see all suppliers passing on the full benefits of lower wholesale prices.”

British Gas is expected to reveal profits of over £550m this week, an increase of more than 50 per cent.

Regulator Ofgem has said it will look into reforming the market if there is not an increase in competition from independent suppliers.

“We’re already legislating to give Ofgem more powers to crack down on market abuses but this report indicates more may need to be done,’ Miliband added.