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29.11.2010 10:50
Regulatory review for UK utilities after recent price increases
The energy regulator Ofgem may change energy market rules in consumer interest
AUTHOR: publics.bg


  • © European Commission


Reuters reports that the British retail energy market will be reviewed after recent price hikes pushed up operator’s profit margins, energy regulator Ofgem announced on Friday. Analysts said a major change to energy market rules was unlikely because rises in wholesale gas prices over the summer have depressed suppliers’ profits for the year as a whole. According to the Reuters report, energy retailers’ margins on combined gas and electricity bills have surged 38% since September. Prime Minister David Cameron’s spokesman welcomed Ofgem’s review. “They are doing exactly the right thing looking into the effectiveness of this market and how it is working and whether it is working from a consumer’s perspective.”, he said.

Ofgem and the utilities have had similar clashes in the past, Reuters report reminds. In August 2009, Ofgem called on energy companies to explain why their retail prices had not fallen further despite a steep drop in wholesale gas and electricity prices during the year.
 


TAGS: UK | Ofgem | electricity | natural gas | regulation | prices 


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