Broadcast on 10th Feb 2014 on VoR.
Britain’s Energy Secretary Ed Davey has urged the UK energy regulator to probe the ‘Big Six’ suppliers, suggesting their profit margins for providing gas are too high. Mr Davey is urging Ofgem to consider taking action against suppliers, including possibly breaking-up companies.
However, the energy industry says that wholesale price rises, transport costs and green taxes are behind the recent hikes passed on to consumers.
Nima Green reports for VoR.
The wet weather has certainly been making headlines this week, but now, Energy Secretary Ed Davey is calling on energy companies to treat their customers better if, and when, it gets cold.
He has accused the ‘Big Six’ providers of sustaining huge profits, whilst still passing on significant price hikes to consumers.
British Gas, for example, announced an energy price hike of 9.2 percent in October last year – around quadruple the rate of inflation.
Mr Davey is calling for an investigation by the regulator Ofgem, to consider taking action against suppliers, “including a break-up of any companies found to have monopoly power to the detriment of the consumer.”
However, critics say there is already too much government interference in the sector.