Big six energy companies face fresh scrutiny over accounts
Energy regulator Ofgem has outlined plans for further scrutiny of the accounts of the big six energy companies, as well as attempts to remove barriers to entry for new competitors.
The regulator confirmed that a range of new measures will make the annual statements of the larger energy companies more useful and accessible.
In a somewhat ominous warning, Ofgem said the big six "must trade fairly with independent suppliers, or face financial penalties."
Under the new measures the largest suppliers will have to publish their wholesale prices two years in advance.
Ofgem CEO Andrew Wright said:
Our rules for a simpler, clearer, fairer energy market are coming into force, meaning that it is getting easier for consumers to pick out the best deals. Now we are also breaking down barriers to competition for new entrant suppliers.
The move was welcomed by the energy secretary Ed Davey who said "this is a significant and welcome toughening up of competition in electricity markets."
Ofgem also announced it will review the method used for reporting the price of electricity sold by the largest suppliers’ generation businesses to their supply businesses in their annual statements.
Last year, MPs criticised the energy watchdog for "failing consumers by not taking all possible steps to improve openness."