Government in fresh attack on gas companies
THE BIG six energy companies are making bigger profit margins on gas than previously thought, Edward Davey has said.
The energy secretary has written to regulators to ask them to investigate the profit margins as part of their ongoing review.
In a letter seen by the BBC, Davey has said that an analysis of the profit margins of energy companies showed that the average profit margin for gas is around three times that of electricity.
He accuses British Gas in particular of having one the industry’s highest profit margins and the largest share of the gas market (41 per cent).
British Gas said the data in the secretary of state’s letter “has already been disclosed and in the public domain for a number of weeks” and that it would participate in further discussion.
Davey asks the competition regulators to consider all possible remedies “including a break-up of any companies found to have monopoly power to the detriment of the consumer.”
The big six have faced mounting pressure since the latest round of bill hikes, which caused backlash from politicians and consumer groups.