A PYMNTS Company

UK: Officials start to quiz top-six energy firms over prices

By  |  October 29, 2013

Price hikes within the UK’s energy sector have attracted intense scrutiny from government officials, who will now require the market’s top-six players to go before the Energy and Climate Change Committee to justify such fees.

Reports say four energy giants have spiked prices by 9.1 percent, on average, claiming the hikes were due to rising wholesale costs.

One firm, SSE, told government officials that wholesale costs rose 4 percent in the last year, while transport costs rose 10 percent. Energy watchdog Ofgem, however, argues wholesale prices are rising more slowly than inflation.

MPs’ call for the companies to justify their prices comes just days after Prime Minister David Cameron announced a market inquiry into energy costs and competition. Both Ofgem and the Office of Fair Trading, as well as the new Competition and Markets Authority, will carry out the market review.

Full content: BBC

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.