As energy suppliers raise prices, Ofgem is to investigate as it discovers that the average margin on a dual fuel tariff has risen from £65 to £90, a 38% increase since September.
Whilst E.ON have introduced a new cheaper fixed price energy plan and EDF Energy have frozen energy prices, several of the ‘Big Six’ energy suppliers, including British Gas, Scottish & Southern and Scottish Power have recently raised their prices.
As Ofgem’s Chief Executive, Alistair Buchanan, said: “With Britain facing an investment bill of £200 billion over the next 10 years, consumers have the right to expect that the energy retail market is providing them with value for money.”
And added that Ofgem is going “to rightly ask if companies are playing it straight with consumers.”
Energy suppliers claim that their price rises are following wholesale gas prices rising more than 25% since the spring.
Since its Retail Market Probe in October 2008, Ofgem has secured a series of important reforms for customers to improve transparency and ensure fair play.
This has secured some real benefits for consumers, including the removal of unjustified price differences, required standards of acceptable practice and improved consumer information, such as annual energy statements. As part of its review Ofgem will be looking at how effectively energy companies have implemented all of these reforms.