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Ofgem is to investigate recent energy price rises as it said they have significantly widened suppliers’ profit margins.
The watchdog said that the net profit margin of £65 per typical customer in September was now £90, a 38% rise. The calculations take into account price rises announced by three of the “big six” suppliers in recent weeks.
Ofgem will now review the domestic energy market to see if more action is needed to protect consumers. The work will be completed by March 2011, and will study the “effectiveness of the retail market”.
A previous investigation of the market in October 2008 found no evidence of anti-competitive behaviour in the sector – so as I wouldn’t hold your breath that this time will be any different.
(Story extracted from an article from the BBC)
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